Mealey's Insurance Pleadings : Mealey's : Legal News & Analysis

Mealey's Insurance Pleadings

September 15, 2023
Unsecured Creditors In Vesttoo Chapter 11 Case Want To Conduct Discovery

WILMINGTON, Del. — Arguing that it “is the only independent fiduciary capable of conducting a thorough and conflict-free investigation,” the Committee of Unsecured Creditors in the jointly administered Chapter 11 case of Vesttoo Ltd. and 48 affiliated entities on Sept. 14 asked a Delaware federal bankruptcy court for leave to conduct discovery.
September 13, 2023
Judge: Insurance-Home Sale Connection Claims Save AI Claims Handling Case

CHICAGO — The theory that homeowners insurance constitutes a service connected to the sale of a home pushes the Fair Housing Act (FHA) to its boundaries but meshes with precedent, a federal judge in Illinois said in partially denying a motion to dismiss in a case alleging that an insurer’s artificial intelligence disproportionately flags claims by Black policyholders for greater scrutiny.
September 12, 2023
Insured Says Coverage Owed For Contribution To Lead Paint Abatement Fund

COLUMBUS, Ohio — The Ohio Supreme Court should affirm a state appellate court’s ruling that an insured’s obligation to contribute to a lead paint abatement fund constitutes damages under applicable insurance policies because the ordinary meaning of the word damages includes the insured’s obligation to contribute to the abatement fund, the insured says in it appellee brief filed in the Ohio Supreme Court.
September 11, 2023
Amber Heard Seeks Dismissal Of Insurer’s Complaint In Defamation Coverage Suit

LOS ANGELES — Amber Heard moved to dismiss an insurer’s second amended complaint seeking a declaratory judgment that it has no duty to defend or indemnify her for a defamation judgment awarded to Johnny Depp.
September 08, 2023
Home Depot Seeks 6th Circuit Review Of No Coverage Ruling For 2014 Data Breach Losses

CINCINNATI — Home Depot filed a notice of appeal in an Ohio federal court asking the Sixth Circuit U.S. Court of Appeals to review the lower court’s finding that an insurance policy’s electronic data exclusion bars coverage for the retailer’s losses stemming from a 2014 data breach, challenging the lower court’s grant of the insurers’ motions for summary judgment in its breach of contract and bad faith lawsuit seeking damages up to the full collective policy limits of $50 million.
September 08, 2023
Insurer: All-Sums Applies In Case To Recoup Costs To Settle Roof Repair Suit

NEW ORLEANS — An insurer seeking to recover costs it paid to settle a roof repair and water damage suit tells the Fifth Circuit U.S. Court of Appeals that another insurer’s opposition to paying the costs fails to address an applicable all-sums approach requiring full payment up to policy limits for covered damages.
September 07, 2023
Insurer Seeks Reconsideration Of Ruling Finding It Has Duty To Defend Builder

FORT WORTH, Texas — A federal judge in Texas erred in determining that a commercial general liability insurer had a duty to defend in a coverage dispute over a homebuilder’s alleged failure to disclose to homebuyers that a home it built was subject to flooding because it didn’t give the insurer the opportunity to respond before ruling in favor of the builder, which had not sought such a ruling, the insurer argues in seeking reconsideration.
September 01, 2023
Contractor’s Insurer Appeals Denial Of New Trial In Coverage Suit To 5th Circuit

NEW ORLEANS — A contractor’s commercial general liability insurer has appealed to the Fifth Circuit U.S. Court of Appeals a ruling by federal judge in Louisiana denying its motion for a new trial or reconsideration of his April ruling dismissing its suit against a subcontractor’s insurer to recover damages the contractor’s insurer paid stemming from water damage caused by the subcontractor’s negligence in performing work on a home’s roof.
August 31, 2023
Wrangling Over Automatic Bankruptcy Stay Continues In Letter Of Credit Fallout

WILMINGTON, Del. — Arguing that the filing of a Chapter 15 case violates a consent order, Chapter 11 debtor Vesttoo Ltd. and 48 affiliated entities on Aug. 30 asked a Delaware federal bankruptcy court to issue a contempt order and sanctions against Bermuda-based White Rock Insurance (SAC) Ltd. and “the putative joint provisional liquidators [JPLs] of segregated cells.”
August 30, 2023
Defamation Claimed In 2nd Cross-Complaint Filed In Breach Suit

LOS ANGELES — In the second cross-complaint filed in a lawsuit in California state court involving allegations that a claim should have been covered by reinsurance of a shared risk incentive pool, a managed services organization (MSO) and its CEO allege defamation.
August 29, 2023
Joint Statement Filed In Coverage Row Over Jet Leased To Russian Operator

SAN FRANCISCO — Plaintiffs in an international aviation insurance coverage dispute involving Russia’s invasion of Ukraine plan to initially focus depositions “on persons identified by the ‘War Risk’ insurers,” according to a filing in California state court.
August 28, 2023
Insurers Tell 5th Circuit $7M Hurricane Ida Dispute Belongs In Arbitration

NEW ORLEANS — A group of foreign and domestic insurers tells the Fifth Circuit U.S. Court of Appeals in an appellee brief that it should affirm a Louisiana federal court’s ruling compelling arbitration of property owners’ claims for $7 million in damages caused by Hurricane Ida and for bad faith, writing that the arbitration is required under the insureds’ policies and the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the Convention).
August 25, 2023
Contractor Appeals Rulings In Faulty Work Coverage Suit To 11th Circuit

WEST PALM BEACH, Fla. — A contractor has appealed to the 11th Circuit U.S. Court of Appeals a Florida federal court’s rulings granting summary judgment to its commercial general liability insurer, denying summary judgment to the contractor on its counterclaim for reformation and dismissing the claim and awarding the insurer final judgment in the insurer’s declaratory judgment suit stemming from a subcontractor’s alleged faulty installation of cladding and glazing systems in a construction project.
August 24, 2023
Enforcement Of Automatic Bankruptcy Stay Sought For Foreign Proceedings

WILMINGTON, Del. — Citing reports of litigation in Bermuda and Israel, Chapter 11 debtor Vesttoo Ltd. and 48 affiliated debtors moved in Delaware federal bankruptcy court for enforcement of the automatic stay against Bermuda-based White Rock Insurance (SAC) Ltd. and “the putative joint provisional liquidators [JPLs] of segregated cells.”
August 22, 2023
CGL Insurer Disputes Coverage For Sex Trafficking Claims Against Hotel Insured

ATLANTA — A commercial general liability insurer filed suit in a federal court in Georgia, seeking a declaration that it owes no coverage for an underlying lawsuit alleging that its insured did not uphold its duty of care concerning the safety of its hotel and hotel guests by failing to prevent and respond to evidence of sex trafficking, arguing that the policy’s “Abuse or Molestation” and “Assault or Battery Liability” endorsements preclude coverage.
August 22, 2023
Judge Refuses To Reconsider Subcontractor’s Coverage Suit Over Worker Injuries

NEW YORK — A New York federal judge on Aug. 21 rejected a subcontractor’s request to reconsider her ruling in favor of its insurer in its lawsuit seeking coverage for claims brought by two of its workers.
August 22, 2023
Parties In Reinsurance Row Dispute Bifurcating Declaratory Judgment Claim

LOS ANGELES — Parties in a dispute over reinsurance billings have filed responses in a California court disagreeing on whether a declaratory judgment claim should be bifurcated, with the plaintiff saying it does not object to bifurcation and the defendants opposing bifurcation but saying it would be appropriate for the court to decide some factual issues before a jury trial.
August 21, 2023
Insurer: No Coverage Owed For State’s Unfair Trade Practices Suit Against Puppyland

TACOMA, Wash. — A commercial insurer filed suit in a federal court in Washington seeking a declaratory judgment that its policy does not cover the state of Washington’s unfair trade practices claims against Puppyland stores, contending that none of the underlying claims arises out of bodily injury, property damage, personal injury or advertising injury and “all claims arise out of conduct explicitly excluded from coverage under the liability portion of the policies.”
August 21, 2023
Parties In Roof Collapse Coverage Suit Agree To Dismissal After Reaching Settlement

NASHVILLE, Tenn. — The parties in a coverage dispute over a roof collapse that occurred at a vehicle manufacturer’s assembly plant during a re-roofing project have stipulated to the dismissal of the suit with prejudice after reaching a settlement.
August 17, 2023
Reconsideration Warranted In Coverage Suit Over Worker Injuries, Subcontractor Says

NEW YORK — A subcontractor asked a New York federal judge to consider her ruling in favor of its insurer in its lawsuit seeking coverage for claims brought by two of its workers, arguing that reconsideration is warranted to “correct a clear error” with the judge’s holding.
August 17, 2023
Reinsurer Seeks Leave To Seal Agreements In Cleanup Costs Coverage Row

PADUCAH, Ky. — Arguing that “the agreements are riddled with the sensitive competitive information,” a reinsurer in a coverage dispute filed an unopposed motion in Kentucky federal court seeking leave to seal redacted versions of a third-party administrative services agreement (ASA) and a reinsurance agreement.
August 16, 2023
CGL Insurer: Baltimore City Employee Acted Intentionally; No Coverage Owed

BALTIMORE —A commercial general liability insurer filed a complaint in a federal court in Maryland contending that there is no coverage owed for an underlying lawsuit alleging that a city employee who was working as a security guard at the Baltimore Convention Center observed and filmed minors while they were undressing in a dressing area during a dance competition that was being held at the center.
August 16, 2023
Insurer: Insured Vs. Insured Exclusion Bars D&O Coverage For Crude Oil Entities

DENVER — An insurer filed an amended complaint in a Colorado federal court seeking a declaration that it owes no directors and officers liability coverage for underlying indemnification demands and counterclaims that directors and officers brought against their former employers and its related entities that operate a crude oil purchasing business, arguing that the business and management indemnity policy’s insured versus insured exclusion barred coverage.
August 15, 2023
CGL Insurers Dispute Coverage For Claims That Insured Contributed To Opioid Crisis

SPARTANBURG, S.C. — Commercial general liability insurers filed suit in a South Carolina federal court seeking a declaration that they have no duty to defend or indemnify against governmental entities’ underlying lawsuits alleging that their insured caused or contributed the opioid crises by improperly marketing, distributing and selling opioid medications.
August 15, 2023
Parties Argue Tolling, Accrual Of Illegal Exaction Claim In ACA Reinsurance Cases

WASHINGTON, D.C. — In a U.S. Court of Federal Claims brief opposing dismissal, 10 group health plans alleging that the government illegally exacted contributions from them under the Transitional Reinsurance Program (TRP) of the Patient Protection and Affordable Care Act (ACA) argue that their claims are timely under “tolling principles that have long been applied by this Court.”