State Employee Health Plan Waived Sovereign Immunity The United States Court of Appeals for the Fourth Circuit, applying federal law, denied a motion to dismiss from the defendant North Carolina State Health Plan for Teachers and State Employees (NCSHP), holding instead that NCSHP waived its state sovereign immunity by accepting federal financial assistance. As a result, the plaintiffs, who are... Read More

Internal Coverage Evaluations Not Protected Work-Product The United States District Court for the Southern District of Illinois, applying both Illinois and federal law, granted the insured’s motion to compel, which sought the production of documents, including internal coverage evaluations, found on the insurer’s privilege log and the inclusion of more detailed descriptions for other entries on the privilege log. The... Read More

Defense Duty Triggered by Allegations of Potential Vicarious Liability The United States Court of Appeals for the Seventh Circuit, in an opinion written by Judge Hamilton and joined by Judge Scudder, applying Illinois law, affirmed the district court’s grant of summary judgment for the additional insured Prate Roofing & Installations, LLC (“Prate”), holding that insurer United Fire & Casualty Company... Read More

Sexual Misconduct Exclusion Applies to School District Settlement The United States Court of Appeals for the Seventh Circuit, in an opinion by Judge Easterbrook, applying Illinois law, held that a policy exclusion for sexual misconduct barred coverage of liability against a school district, thus reversing a ruling by the district court. The district court had found that the exclusion was... Read More

Rosebud Case and Other Recent Dismissals N.D. Ill. / COVID-19: Rosebud Restaurants Fail to Allege Physical Loss or Damage Resulting from COVID-19 Pandemic The United States District Court for the Northern District of Illinois, in an opinion written by Judge Kendall, applying Illinois law, granted the insurer’s motion to dismiss for failure to state a claim against insured Rosebud Restaurant, Inc.... Read More

No Coverage for Conversion, Nuisance, and Trespass The United States Court of Appeals for the Seventh Circuit, in an opinion written by Judge Kanne, applying Illinois law, affirmed the grant of judgment on the pleadings in favor of the insurer finding that the insurer had no duty to defend common law claims arising out of TCPA-violating conduct. The insured, Mesa... Read More

No Fiduciary Relationship Between Broker and Client The United States District Court for the Southern District of Texas approved and adopted a magistrate judge’s recommendation, applying Texas law, that an insurance broker’s motion to dismiss the insured’s claims of negligence, breach of fiduciary duty, fraud, breach of contract, and negligent or intentional misrepresentation be granted, holding that the insured did... Read More

Statute Allows Recovery from Long-Dissolved Companies In June 2021, Oregon Governor Kate Brown signed into law HB 2337, which amended an Oregon corporate law that requires claims against dissolved corporations and limited liability companies to be filed within five years of dissolution to now include an exception for any claims that can be satisfied in full or in part by... Read More

Similar Complaints Against a Single Individual is a “Single Claim” The Illinois Appellate Court for the Fifth District, in an opinion written by Justice Barberis with Justices Moore and Vaughan concurring, applying Illinois law, reversed the judgment of the circuit court denying the insurer’s motion to dismiss, holding instead that an insurer has no duty to defend and indemnify the... Read More

Workers’ Compensation Coverage Not Preempted by Federal Drug Laws The Supreme Court of New Hampshire, applying New Hampshire law, reversed and remanded a determination by the New Hampshire Compensation Appeals Board that an insurer cannot be ordered to reimburse an employee for his purchase of medical marijuana because such reimbursement would constitute aiding and abetting his commission of a federal... Read More