December 2007

The Hawaii Supreme Court just held yesterday that insurance policies with an “assignments require consent” clause cannot be assigned without the insurance company’s consent.  In Del Monte Fresh Produce (Hawaii), Inc. v. Fireman’s Fund Ins. Co. the Hawaii Supreme Court expressly held an assignment will not occur as a matter of law, but rather only

     President Bush signed today H.R. 2761, the Terrorism Risk Insurance Program Reauthorization Act of 2007, preventing the expiration of the Act on December 31, 2007, and extending the federal insurance program for seven years.  The Act extends coverage to catastrophic acts of not only foreign terrorism but also domestic terrorism.

     In February, 2006, Federal District Court Judge Helen Gillmor granted the insurer’s Motion for Partial Summary Judgment, determining there was no duty to defend.  Scottdale Ins. Co. v. Sullivan Properties, Inc., 2006 U.S. Dist. LEXIS 11582 (D. Haw., Feb. 27, 2006).   The decision invited Scottsdale move for reimbursement of defense costs.

    

Practitioners have noticed, and have been puzzled by, a schism in the Supreme Court of Hawai`i’s rulings on attorneys’ fees in bad faith actions.  At least one case held that a bad faith action was in the nature of assumpsit and, thus, awarded fees to the insurer from the insured.  Six months later, another case

     In Garcia v. Federal Ins. Co., Case No. SC06-2524 (Fla., Oct. 25, 2007), the Florida Supreme Court recently analyzed certified questions from the Eleventh Circuit regarding coverage for an additional insured under a homeowner’s policy.  The issue was whether the policy’s coverage of the additional insured was limited to vicarious liability for

     Last week, we reported Congress was considering extending the Terrorism Risk Insurance Act of 2002, set to expire on December 31, 2007.   Today, the House approved a bill 303-116 to extend the Act and expand coverage despite the threat of a presidential veto.  While the Senate bill merely extends the existing program for