Court minimizes “energy” aspects of the product finding no duty to defend or indemnify based on liquor liability exclusion. The Federal Seventh Circuit Appellate Court, applying Illinois law, found that a liquor liability exclusion applied to bar defense and indemnity coverage to Phusion, the producer of the Four Loko alcohol energy drink, for various suits alleging injury and death. The... Read More

Policyholder in NY defeats motion to dismiss on defense expenses despite having rejected Insurer’s counsel.  A New York State Judge refused to dismiss Colgate’s counterclaims that its insurer had breached its duty of the implied covenant of good faith in defending cases alleging that Colgate’s talc products contained asbestos.  Colgate had rejected defense counsel appointed by OneBeacon to defend it,... Read More

California Federal Court rejects insurer’s attempt to limit its losses to a single occurrence limit of $1M. A California Federal District Court denied a motion for summary judgment seeking a ruling that a salmonella outbreak arose out of a single occurrence, thereby limiting the CGL insurer’s liability to a $1,000,000 single occurrence limit.  The court reasoned that federal regulators had... Read More

The Delaware Supreme Court permits suits against dissolved corporations through receiver or trustee. The Delaware Supreme Court reversed a lower court’s grant of summary judgment and held that a dissolved corporation’s contingent rights under insurance policies are capable of vesting and a receiver must be appointed in order for the dissolved corporation to participate in claims against that dissolved corporation,... Read More

Notice is not necessarily late even when given after the jury verdict was rendered. Applying Indiana law, the Federal Seventh Circuit Court of Appeals overturned the district court’s grant of summary judgment in favor of the insurer and remanded the case for further fact findings. The court declined to bar coverage to Mead Johnson by primary and excess CGL carriers... Read More

Third-party complaints can be relied upon to establish a defense duty. An Illinois Appellate Court applying Illinois law found that the trial court had properly relied on third-party complaints, rather than just the original complaint, in determining that a CGL insurer had a duty to defend where the third-party complaints were reviewed solely to determine whether there was a potential... Read More

CGL Mitigation Expenses May Be Covered:  Coverage may be available for the costs of removing two interstate signs because an identical third sign fell.  (SC St.) The South Carolina Supreme Court held that expenses related to the removal of two interstate signs may be covered after an identical third sign fell, causing damage.  The court found that the state-ordered removal of... Read More

Coverage for two class action suits based on the release of private medical information was not excluded by a provision barring recovery for injuries arising out of the violation of state or federal law. A California Federal District Court refused to apply a Hartford policy exclusion barring coverage for violations of state and federal law, despite the fact the policyholder... Read More

In a Chinese drywall case, a Colorado state court (applying Massachusetts law) found that “pollutant” in an absolute pollution exclusion is ambiguous absent more facts. CGL insurers asserted that the absolute pollution exclusion in the policy issued to a Chinese drywall supplier barred coverage because the underlying claims alleged the release of pollutants.  Applying Massachusetts law, the court denied summary... Read More

The 9th Circuit Court of Appeals held that a policyholder who received a US EPA request for information and general PRP notice letter was entitled to a defense. In a case involving environmental contamination at the Portland Harbor, the 9th Circuit Court of Appeals reaffirmed an earlier ruling that an information request and a general Potentially Responsible Party (“PRP”) notice... Read More