Property
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May 13, 2024
Justices Decline To Hear $3.5B Insurance Surplus Case
A proposed class action accusing an insurer of failing to return an over $3.5 billion surplus of underwriting profits back to policyholder members will be litigated in Illinois state court, the U.S. Supreme Court ruled Monday, denying the company's bid for certiorari.
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May 10, 2024
Medical Device Co., Insurers Settle Equipment Damage Loss
A medical device manufacturer and its insurers have settled their coverage dispute over the manufacturer's claim it suffered an "equipment breakdown loss" damaging its mills, lathes and vacuum pump, the insurers told a Florida federal court.
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May 09, 2024
10th Circ. Appeal May Expand Pollution Coverage In NM
The Tenth Circuit will hear oral arguments May 20 to determine whether absolute pollution exclusions doom a New Mexico property owner's quest for $120,000 in defense coverage in a case attorneys say could determine the future of such environmental coverage in the state.
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May 09, 2024
REIT Says Insurers Must Cover Antitrust Conspiracy Claims
A real estate investment trust accused its insurers of wrongfully denying coverage for an underlying multidistrict litigation alleging that the company was part of an antitrust conspiracy to inflate rents for multifamily housing, telling a Colorado federal court that the MDL falls plainly within multiple coverage parts of its policies.
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May 09, 2024
Md. Insurance Chief On Keeping Up With AI Regulation
The insurance industry is exploring artificial intelligence technology use in its business as regulators like Maryland Insurance Commissioner Kathleen Birrane work to keep up and protect consumers from the risks of the evolving technology. Here, Law360 checks in with Birrane on the subject.
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May 09, 2024
DEA Cannabis Proposal Likely To Keep Insurers Sidelined
Federal drug enforcers' recent proposal to remove cannabis' designation as a high-risk drug with no accepted medical use could portend insurance benefits, but experts say uncertainties over the drug's mixed legal status will keep insurers sidelined for now.
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May 09, 2024
Insurance Litigation Week In Review
Michigan's top court mulled the effect of new liability coverage mandates on older auto policies, a group of insurers escaped arbitration in an airport terminal defect dispute, and South Carolina drivers were granted class certification in a suit over Progressive's total loss vehicle valuation methods.
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May 09, 2024
A Mother's Fight To Secure Insurance Benefits For Autism
After Lorri Unumb's son was diagnosed with autism, she spent over a decade drafting and securing legislative mandates for autism insurance benefits across the country. With Mother's Day on May 12, Law360 spoke with Unumb about how for her, motherhood included a calling to advocate for autism therapy coverage.
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May 08, 2024
Water-Damaged Conn. Hotel Sues Insurer For More Coverage
A Connecticut hotel took Sompo America Insurance Co. to state court after the insurer only partially covered substantial water damage that forced the newly opened lodge's closure and purportedly offered "nonsensical" justifications for denying full coverage.
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May 07, 2024
Insurer Seeks Hearing Cancellation In Arbitrator Bias Dispute
An insurer seeking the removal of an arbitrator in a Bermuda reinsurance coverage dispute told the Second Circuit on Tuesday that a hearing on the issue should be canceled as an award was issued in the arbitration, rendering the dispute moot.
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May 07, 2024
Title Insurer Gets Partial Win Against Lender In Lien Dispute
A lender seeking coverage from its title insurer for mechanic's lien claims after the owner of a senior living community defaulted on its $26 million construction loan can only potentially get coverage under a disbursement endorsement in its policy, a Colorado federal court ruled, finding an exclusion applicable.
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May 06, 2024
Meet The Attys For NC Insurance Mogul Facing Bribery Retrial
Nearly two years after the Fourth Circuit exonerated Greg E. Lindberg on bribery and wire fraud charges, a team of Katten Muchin Rosenman LLP partners with prosecution experience has joined forces with prominent white collar defense lawyer James F. Wyatt lll in hopes of staving off a second conviction for the embattled insurance tycoon.
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May 03, 2024
How Big IP Judgment Winners Are Insuring 'Nuclear Verdicts'
Until a few years ago, intellectual property plaintiffs who scored large monetary awards — often referred to as "nuclear verdicts" — had to wait out a lengthy appellate process before knowing how much money they would end up with. But a relatively new type of insurance policy is allowing plaintiffs to insure part of their judgment in case it gets reduced or wiped out on appeal.
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May 02, 2024
Allstate Secures Win In Untimely Ga. Storm Damage Dispute
The Georgia Court of Appeals upheld a trial court's grant of a directed verdict in favor of Allstate in a dispute brought by two homeowners who claimed the insurer owed over $430,000 after it failed to cover all sums they believed were owed for storm damage.
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May 02, 2024
Farmers Face Uphill Fight In 5th Circ. Silo Coverage Row
A Texas farming cooperative faces an uphill battle in persuading the Fifth Circuit to undo a ruling that denied it coverage for a $1.3 million arbitration award for construction defects in their grain silos, experts told Law360.
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May 02, 2024
USAA Wrongly Denied Fire Damage Claim, Wash. Couple Says
A Washington couple accused their homeowners insurer of unreasonably denying their fire damage claim despite their timely response to all of the insurer's claim inquiries and requests, further accusing the insurer of violating Washington's Consumer Protection Act and Insurance Fair Conduct Act.
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May 02, 2024
Insurers Are Covering Litigation Funders. Will It Catch On?
Insurers have started to cover losses from a third-party litigation funder's portfolio of plaintiff-side investments, experts tell Law360, calling into question the insurance industry's broader position that third-party litigation finance hikes carriers' litigation costs, thus requiring them to raise premiums for consumers.
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May 02, 2024
Coral Bleaching Highlights Value Of Reef Insurance
An ongoing bleaching event expected to weaken coral reefs worldwide should emphasize the importance of novel insurance products in helping to restore critical marine life following major storms, climate and insurance experts say.
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May 02, 2024
Insurance Litigation Week In Review
A treasure hunter got no coverage for his thwarted quest, LexisNexis was sued again for spying on drivers, a fatal drag race had its win reversed, a Chicago general contractor split the Seventh Circuit, and the Fifth Circuit wondered if a healthcare company's mistake was a claim. Here, Law360 takes a look at this week's top insurance news.
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May 02, 2024
Atty In $119M Bad Faith Win Seeks Justice In And Out Of Court
Policyholder attorney Benjamin W. Massarsky of Miller Friel is part of a team that won over $119 million from insurers in a case thought to have garnered among the largest bad faith wins in the past 30 years. He also works pro bono to fight for accommodations for students with disabilities. Here, he shares where his passions for justice converge.
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May 02, 2024
2nd Circ. To Weigh Court's Role In Bermuda Arbitration Row
The Second Circuit will review Wednesday whether a New York federal court has the authority to remove an allegedly biased arbitrator in a Bermuda reinsurance arbitration, addressing the question of the federal court's limited role in international arbitration. Here, Law360 breaks down the case in advance of oral arguments.
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May 02, 2024
5th Circ. Asks If Facts Matter In Construction Defect Row
A Fifth Circuit panel weighed the importance of facts versus the law in a dispute over whether an insurer must indemnify a construction company for a $1.3 million arbitration award for construction defects in a Texas farming cooperative's grain silos.
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May 02, 2024
Insurance Industry Still Navigating Risks Created By Dobbs
The U.S. Supreme Court's overturning of Roe v. Wade has prompted new insurance policy offerings for healthcare providers and legislation to protect medical malpractice coverage in some states, with additional risks beyond the initial threat of litigation on the horizon, experts say.
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May 02, 2024
Hiscox, Lancashire Predict Loss From Baltimore Bridge
British-listed insurers Hiscox and Lancashire Holdings confirmed Thursday they will likely face a financial hit from the collapse of the Francis Scott Key Bridge in Baltimore.
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May 02, 2024
Sills Cummis Adds Pillsbury Atty As Insurance Group Leader
Sills Cummis & Gross PC has added an experienced insurance attorney from Pillsbury Winthrop Shaw Pittman LLP as a leader of two of its insurance groups.
Expert Analysis
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Capturing Insurance Coverage For Climate Change Suits
As municipalities increasingly file suits seeking damages from oil companies in connection with climate change, the companies should consider filing actions to forestall insurer denials of commercial general liability coverage based on theories of novelty or inapplicable pollution exclusions, say attorneys at Haynes and Boone.
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After Climate Rulings, Insurers May Go On Coverage Offense
As climate change lawsuits progress, coverage litigation quickly follows — as evidenced by two recently filed suits, Aloha Petroleum v. National Union Fire Insurance and Everest Premier Insurance v. Gulf Oil — and insurers will likely become more proactive in seeking to limit their exposure, say Jose Umbert and Hernan Cipriotti at Zelle.
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Indirect Hurricane Ian Losses Could Be Covered By Insurance
Even companies indirectly affected by Hurricane Ian — for instance, by losses in their supply chain — should review their commercial property policies as they might benefit from specific insurance clauses covering these types of losses, says William Wagner at Taft.
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Lessons From 1st COVID Biz Interruption Policyholder Verdict
Robyn Anderson at Lathrop examines what made Baylor College of Medicine's recent COVID-19 business interruption case a success in Texas state court, and considers whether this first win on behalf of an insured is an outlier or a sign of more to come.
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State COVID Insurance Rulings Highlight Errors In Dismissals
Recent California and Vermont decisions in favor of policyholders, along with a $48 million jury verdict in Texas, underscore the error that courts are making by dismissing COVID-19 business interruption lawsuits at the pleading stage without consideration of the facts and evidence in each case, say Joseph Niczky and Michael Levine at Hunton.
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Fla. Evidence Code Update Lowers Burden For Image Use
Florida's recent evidence code change permits judicial notice of images and certain other graphics, a hugely meaningful development for litigants across a wide range of practice areas, though the effect will likely be immediately felt in property insurance cases, say Eve Cann and David Levin at Baker Donelson.
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Courts Are Not Shifting On COVID Biz Interruption Stance
Although a recent Law360 guest article suggested that the pendulum is about to swing in favor of policyholders seeking business interruption coverage for pandemic-related losses, the larger body of appellate case law — applying the laws of 25 states — continues to find no coverage, say attorneys at Dentons.
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What Snap Removal Debate Means For Insurance Disputes
A potential circuit split regarding the permissibility of snap removal to federal court, which allows defendants to circumvent the forum defendant rule, is particularly a concern in insurance cases due to the difficulty of removing such cases, and the perception that some state courts are more favorable to policyholders, says Greg Mann at Rivkin Radler.
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Questions Remain On Computer Fraud Coverage For Phishing
There are questions regarding the applicability of computer fraud coverage to phishing scheme losses in the wake of the Ninth Circuit's decision in Ernst & Haas v. Hiscox earlier this year, with a backdrop of differing case results and evolving fact patterns over the past few years, say Robert Callahan and Melissa D’Alelio at Robins Kaplan.
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Storm Insurance Considerations For Cos. New To Florida
As more and more businesses migrate to Florida, commercial property owners and tenants should carefully consider specific contract terms in order to avoid insurance issues and litigation in the event of storm damage, say Philippe Lieberman and Marko Cerenko at Kluger Kaplan.
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Business Insurance Considerations Amid Conflict In Ukraine
As the conflict in Ukraine continues to wreak havoc on global business operations and supply chains, companies should carefully assess all the various types of insurance coverage that may mitigate corporate losses, say attorneys at Morgan Lewis.
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Recent State Rulings Buck Trend In COVID Insurance Disputes
For the last two years, policyholders have been mostly unsuccessful in arguing that commercial property policies should cover losses suffered due to the COVID-19 pandemic, but a trio of recent state court decisions suggests that the pendulum may swing in policyholders' favor, say attorneys at Reed Smith.
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NY Waterborne Property Ruling Is A Warning To Policyholders
A New York state court's recent decision in Mill Basin v. Markel, adopting an expansive interpretation of a waterborne exclusion, is a reminder to policyholders that courts may rule against them even when case law and insurance principles are seemingly in their favor, say Catherine Doyle and Caroline Meneau at Jenner & Block.