If an insurer pays for repairs to a building based on the insured’s preliminary estimate of damage, does the insured have further obligations to pay for property damage? This was one of the issues in Chateau Argonne Condominium Assoc. v. State Farm Ins. Co., 2008 U.S. Dist. LEXIS 70917 (E.D. La. Sept.
2008
Sinkhole Collapse Not Excluded as Earth Movement
In Federated Rural Elec. Ins. Corp. v. TIG Ins. Co., 2008 U.S. App. LEXIS 20268 (9th Cir. Sept. 19, 2008), the issue was whether an excess, following form policy excluded coverage for "sinkhole collapse" under its earth movement exclusion.
TIG’s excess policy excluded "earth movement," but did not define "earth…
Insurer Entitled to Attorney Fees Under Assumpsit Statute
In a recommended decision, a United States magistrate determined the insurer was entitled to attorney fees under Hawaii’s assumpsit statute, Haw. Rev. Stat. 607-14. See Deguchi v. Allstate Ins. Co., 2008 U.S. Dist. LEXIS 73072 (D. Haw. Sept. 23, 2008).
A prior post discussed the facts of Deguchi. Briefly…
Insurer’s Suit Challenging Hawaii’s Commissioner is Premature
In Hawaii Management Alliance Assoc. v. Schmidt, 2008 U.S. Dist. LEXIS 69995 (D. Haw. Sept. 5, 2008), the the insured ("HMAA"), a mutual benefit society, challenged a memorandum issued by the Hawaii Insurance Commissioner which stated granting a plan administrator discretionary authority so as to deprive the insured of a de novo…
Attorney Fees Denied Despite Insured’s Successful Suit Securing Coverage
The simple issue in Mohnkern v. The Professional Ins. Co. was: does a Florida statute automatically award attorneys’ fees upon a successful outcome by the beneficiary/insured? Or does the statute require the insurer to have wrongfully caused the insured/beneficiary to resort to litigation before attorneys’ fees can be awarded?
The Florida…
Tulane University Seeks Coverage for Katrina Damage
Three years after Katrina, Tulane University continues to be mired in litigation seeking coverage under its property policies for damage inflicted by the hurricane. In Ace American Ins. Co. v. Administrators of the Tulane Educational Fund, 2008 U.S. Dist. LEXIS 66299 (E.D. La. Aug. 29, 2008), the court decided several coverage issues…
ICA Oral Argument on Coverage Issues
An oral argument on coverage issues is scheduled before the ICA on November 12, 2008. The brief description of the case (generally drafted by an ICA law clerk) states:
Chezray Hayes, a minor, died when the aircraft he waspiloting crashed on Molokai. His parents, Defendants-AppelleesMitchell and Natalie Hayes (the Hayes), filed a wrongful
…
Is Damage From Hurricane Ike Caused by Flood or Wind?
The battle has begun on whether the Hurricane Ike’s damage to the Texas coast was a result of flood or wind. Here is an interesting post from a Texas blogger suggesting that the litigation spawned by Hurricane Katrina may continue in the wake of Hurricane Ike.
Since the storm, Texas legislators…
Rights Under Insurance Policy Assignable
Can an insured assign the rights to payment under its insurance policy even though the policy includes a consent-to-assignment clause? The Vermont Supreme Court recently answered, yes. See In re Ambassador Ins. Co., 2008 Vt. LEXIS 108 (Vt. Aug. 14, 2008).
Ambassador issued two occurrence-based excess policies to Green Industries…
