No Independent Cause of Action for Deficient FRCP 26 Disclosures Even if Induced Settlement The 7th Circuit, in an opinion written by Judge Brennan, reversed the district court and held that failure to disclose insurance coverage under Federal Rule of Civil Procedure 26 cannot give rise to a cause of action for negligent misrepresentation about available insurance coverage. A fatal... Read More

Reinstates Zurich’s Death Benefit Denial Due to Possibility was Caused by Pre-Existing Cardiac Condition and Not Car Accident Even if Not “Best Reading” of Policy The United States Court of Appeals for the First Circuit reversed the District Court’s finding that American Insurance Company’s (“Zurich”) denial of accidental death benefits was arbitrary and capricious.  The First Circuit found Zurich’s... Read More

Claim by 3rd Party Shot During Murder-Suicide Triggers Duty to Defend The Supreme Court of Pennsylvania, applying Pennsylvania law, affirmed the opinion of the Superior Court of Pennsylvania and held that Erie Insurance had a duty to defend the estate of its insured in a personal injury lawsuit.  According to the Supreme Court of Pennsylvania, the shooting of a third... Read More

Policyholder Cannot Target One Insurer with “Those Sums” language if Record Provides Factual Basis to Accurately Spread Between Triggered Years In response to a certified question from an Ohio federal district court, the Ohio Supreme Court declined to equate policy language obligating AIG / National Union Fire Insurance Co. of Pittsburgh to pay “those sums” with policies that contain “all... Read More

“Attorney Fee Exclusion” Inapplicable Even Though Attorney’s Fees the Measure of Alleged Damages In an opinion written by Justice Cunningham, with Justices Connors and Harris concurring, the First District Appellate Court of Illinois, applying Illinois law, found that ISBA Mutual Insurance Company (“ISBA Mutual”) had a duty to defend its insured, a lawyer accused of malpractice, reversing a lower court’s... Read More

Disclosure to 3rd Party a “Publication” – “Violation of Statutes” Exclusion Not Applicable to BIPA Claim The Illinois Appellate Court for the First District, in an opinion written by Justice Mikva with Justices Connor and Harris concurring, applying Illinois law, affirmed the Circuit Court’s ruling and held that the insurer had a duty to defend claims for violations of the... Read More

Insurer’s Settlement of Fracking Blast Case Not “Voluntary Payment” Barring Recovery from Co-Insurer The Tenth Circuit, applying Wyoming law, held that a commercial auto insurer had no duty to defend or indemnify its insured for a personal injury lawsuit arising out of a fire at a fracking site.  The Tenth Circuit held that the commercial auto insurer was to be... Read More

Consent to Settle Clauses Are Not Against Public Policy and Are Enforceable The Massachusetts Supreme Court, applying Massachusetts law, upheld the trial court’s ruling and held that consent to settle clauses in professional liability policies are not against public policy and are enforceable.  Thus, an insurer is not liable for its insured’s refusal to settle litigation. Homeowners Douglas Rawan and Kristen... Read More

Pieces of Rock a “Pollutant” Under Pollution Exclusion The Fifth Circuit, applying Texas law, affirmed the District Court’s finding that coverage for an unplanned discharge of rock fines, pellets produced during the course of quarry operations, is excluded by a pollution exclusion.  The Fifth Circuit found that when the effects of the discharge were looked at as a whole, the... Read More

“Discovery Rule” Does Not Toll Statute of Limitations in Negligent Procurement Action The Illinois Appellate Court for the First District, in an opinion written by Justice Burke with Justices Lampkin and Reyes concurring, applying Illinois law, held that a two-year statute of limitations applies to a claim for negligent procurement against an agent.  Per Illinois Supreme Court precedent, the two-year... Read More