IL 1st Dist. – Liability For Discontinued Experimental Vaccine Program Covered
April 4, 2014 | | Illinois, Insurance Bytes

Decision to discontinue program was “professional services.” The First District Appellate Court held that Lexington Insurance Company breached its defense and indemnity obligations with respect to a settlement Rosalind Franklin University of Medicine and Science paid in an underlying suit filed by former patients seeking compensation for the school’s decision to discontinue an experimental breast cancer vaccine program.  The court... Read More

Asbestos Exclusion (WI): Wisconsin Supreme Court finds Asbestos Exclusion Applies.
March 13, 2014 | | Insurance Bytes

The Wisconsin Supreme Court found an asbestos exclusion precluded coverage to the sellers of an apartment building accused of failing to disclose that the structure had ducts that were insulated with asbestos.  Contractors renovating the building after the sale worked on the ducts, causing the release of asbestos in the building and making it uninhabitable.  Ultimately, the purchasers were... Read More

Environmental Trigger v. Asbestos Trigger (PA): Long-tail environmental contamination implicates only one year of coverage.
March 13, 2014 | | Insurance Bytes

A Pennsylvania State Appellate Court affirmed a ruling that an excess insurer must defend a policyholder that had exhausted its per–occurrence primary limits.  The case involved a manufacturer of a failed flexible connector product in use at a gas station, which caused gasoline to leak onto neighboring properties.  Applying Pennsylvania law, the court held that the state does not... Read More

SIR’s Can Be Satisfied By 3rd Parties: Florida Supreme Court landmark ruling.
March 13, 2014 | | Insurance Bytes

The Florida Supreme Court recently held that a self-insured retention could be satisfied by a third-party payment under an indemnity agreement rather than requiring the policyholder to satisfy the retention separately with its own funds.  In the underlying case, a homeowner sued a home-builder when she fell and injured herself on allegedly defective attic stairs.  The home-builder’s coverage included... Read More

Punitives Available Even When No Actual Damages: 4th Cir. Applying South Carolina law.
March 13, 2014 | | Insurance Bytes

The Federal Fourth Circuit Court of Appeals held, under South Carolina law, that a policyholder need not prove actual damages in order to recover bad faith punitive damages.  When a jury finds a “willful or reckless invasion of a legal right,” punitive damages can be presumed.  The policyholder was a window and door manufacturer facing five product liability actions. ... Read More

ALERT: New Trial Granted In Rollover Case For Failure To Adequately Disclose Evidence Of Insurance In Discovery.
March 13, 2014 | | Insurance Bytes

The Georgia Supreme Court ordered a new trial after a jury verdict in favor of Ford Motor Co. in a product liability case because Ford failed to adequately disclose its insurance coverage during discovery.  Ford responded to discovery requests and interrogatories about the nature and extent of its insurance coverage with objections that the discovery was both irrelevant and... Read More

Asbestos – Horizontal Exhaustion:
February 7, 2014 | | Email, Insurance Bytes

A Delaware State Court, applying New York law, affirmed a jury verdict in an asbestos coverage case. In addition to agreeing with the jury that the excess policies contained defense duties, the court also left intact the jury’s verdict applying an “all sums” methodology.  The court found that the policies should exhaust horizontally and therefore the policyholders must exhaust... Read More

Pollution Exclusion – Livestock Manure – Dueling IL & WI Cases:
February 7, 2014 | | Email, Insurance Bytes

Cow manure odors barred by Pollution Exclusion in Wisconsin, but Illinois hog manure odors covered. An Illinois Appellate Court found that the relevant policy’s pollution exclusion did not preclude coverage for nuisance and negligence claims asserting the release of “foul and obnoxious odors” caused by the operation of a hog farm and the land application of manure from the hog... Read More

Number of Occurrences:
February 7, 2014 | | Email, Insurance Bytes

5th Cir. and TN cases find that multiple claims arose out of a single occurrence, lowering the applicable SIR’s for Hurricane Katrina and med mal claims. The Federal Fifth Circuit Court of Appeals found that St. Bernard Parish was entitled to a defense from its insurer in relation to claims by seventy property owners alleging that the Parish had wrongfully... Read More

Another Qualcomm Case Increases Settlement Anxiety:
February 7, 2014 | | Email, Insurance Bytes

Settlement with a primary insurer for less than full limits forever precludes access to excess coverage: A Washington Appellate Court found that a policyholder that settles with its primary investment management insurer cannot access its excess insurance, even if it assumes the remainder of the primary’s limits.  The case involved a fraudulent $240 million tax shelter.  The policyholder settled with... Read More