March 2009

    The insured moved for summary judgment on bad faith because of the insurer's alleged delayed and incomplete payments after Hurricane Katrina destroyed property.  See Plaquemines Parish School Bd v. Indus. Risk Insurers, No. 06-7213, 2009 U.S. Dist. LEXIS 20004 (E.D. La. March 11, 2009). 

    School buildings operated by the insured

    We have previously discussed here, here, here, and here the validity of assigning liability policies to corporate successors without securing the insurer's consent as required by the policy. Coverage issues arise when the successor seeks benefits under the policy assigned to it by the predecessor.  Although the validity of the assignment was not at issue

    Revisiting the longstanding Stringfellow Acid Pits coverage litigation, the California Supreme Court relied on the doctrine of concurrent proximate cause as applied to the pollution exclusion to determine the insurer must indemnify for covered and uncovered claims.  See State of California v. Allstate Ins. Co., S149988 (Cal. March 9, 2009)[here].

    

    The outline on transfer of liability policies to a successor created by Rina Carmel and me for our round table presentation last week at the ABA Section of Litigation, Insurance Coverage Litigation Committee in Tucson, is here.  Materials from the plenary and breakout sessions are available at the ABA Section of Litigation website

    The issue before the New York Court of Appeals in Fasso v. Independent Health Assoc., No. 21 (N.Y. Feb. 24, 2009) [here] was whether the injured party and the tortfeasor could settle on terms that extinguished the insurer's subrogation rights? 

    Plaintiff was treated by Dr. Doerr and subsequently developed complications that

    Whether an "all risk" policy covered a building severely damaged by hidden decay was the issue before the Second Circuit in Dalton v. Harleysville Worcester Mut. Ins. Co., No. 07-3545 (2nd Cir. Feb. 19, 2009). 

      During the policy period, damage to an interior wall between the insureds' building and the adjacent