The federal district court held that the insurer was obligated to defend the additional insured, rejecting the insurer’s argument that the additional insured was an indemnitee under the policy’s supplementary payments provision, negating the insurer’s having to pay defense costs. Charter Oak Fire Ins. Co. v. Liberty Mut. Fire Ins. Co., 2026 U.S. Dist.
Court Finds Potential Conflicts In Denying Insurer’s Motion to Dismiss Claim for Independent Counsel
By Tred R. Eyerly on
The District Court denied the insurer’s motion to dismiss the additional insured’s claim that the appointment of independent counsel was required. S. Cal. Edison Co. v. Travelers Prop. Cas. Co of Am., 2025 U.S. DIst. LEXIS 148495 (C.D Calif. July 15, 2025).
Southern California Edison Company (SCE) entered a Master Services Agreement with its…
Court Denies Cross Summary Judgment Motions on Coverage for Odors in Newly Purchased Home
By Tred R. Eyerly on
The federal district court denied cross motions seeking to establish whether the policy covered damage due to smells in the insureds’ newly purchased home. Akina v. State Farm Fire & Cas. Ins. Co., 2026 U.S Dist. LEXIS 162817 (W. D. Wash. July 22, 2026).
Plaintiffs bought a home in May 2024 but never conducted…
Wisconsin Supreme Court Finds Coverage Under Ensuing Loss Provisions
By Tred R. Eyerly on
Reversing the trial court’s grant of summary judgment to the insurer, the Wisconsin Supreme Court determined that genuine issues of material fact existed on whether ensuing losses as defined in the policy were covered. Cincinnati Ins. Co. v. Ropicky, 2026 Wisc. LEXIS 302 (Wis. July 7, 2026).
The insured suffered damage during a storm on…
Sixth Circuit Determines One Occurrence for Purposes of Determining Number of Retained Limits
By Tred R. Eyerly on
The Sixth Circuit affirmed the district court’s finding that numerous lawsuits against the insured for distribution of peanut butter with salmonella contamination triggered one occurrence that meant one retained limit was applicable. J.M. Smucker Co. v. Ace Am ins. Co., 2026 U.S. App. LEXIS 19304 (6th Cir. July 1, 2026).
Smucker made food products…
Endorsement is Void Where Compliance is Impossible
By Tred R. Eyerly on
The Sixth Circuit found that the insured’s loss of property due to fire was covered despite noncompliance with an endorsement requiring encompassing the property. 3371 Reading, LLC v. Liberty Mut Group, Inc., et al., 2026 U.S. App. LEXIS 19156 (6th Cir. June 29, 2026).
The insured, 3371 Reading, owned a building undergoing renovation. After…
Underlying Complaint Alleges Possibility of Coverage, Triggering Duty to Defend
By Tred R. Eyerly on
In a dispute among insurers for various defendants in the underlying case regarding the providing of a defense, the Second Circuit vacated, in part, the district court’s judgment and remanded the case. New Your Marine and Gen. Ins. Co. v. Fed. Ins. Co., 2026 U.S. App. LEXIS 18087 (2nd Cir. June 23, 2026).
Mary…
Insurer’s Claim of Insured’s Misrepresentations is Time Barred
By Tred R. Eyerly on
The federal district court granted the insured’s motion for summary judgment and dismissed the insurer’s claims of misrepresentation against the insured. Colony Ins. Co. v. Oz Solutions, et al., 2026 U.S. Dist. LEXIS 138034 (S.D. N.Y. June 22, 2026).
Oz Solutions contracted with Danya Cebus Construction LLC to “supply skilled temporary workers to give…
Washington Court Rules Insurer’s Payment of UIM Claim Does not Extinguish Extracontractual Damage Claim
By Tred R. Eyerly on
The Washington Court of Appeals found the insurer was exposed to extracontractual damages after paying Under Insured Motorist (UIM) benefits. Labeaume v. First Nat’l Ins. Co. of Am., 2026 Wash. App. LEXIS 1336 (Wash. Ct. App. June 16, 2026).
Jane Labeaume was injured in a car crash with another vehicle. The driver of the…
Landlord Determined to Not Qualify as Additional Insured
By Tred R. Eyerly on
In a dispute between two insurers, the Second Circuit affirmed the district court’s determination that the landlord was not an additional insured under the tenant’s policy. Peleus Ins. Co. v. Am. European Ins. Co., 2026 U.S. App. LEXIS 17981 June 22, 2026).
Blossom Miller sued 57th Avenue and 21st Century in state court…