Defendants were sued in an underlying state court action. See Riverport Ins. Co. v. Oakland Cmty. Housing, Inc., No. C 08-3883, 2009 U.S. Dist. LEXIS 104472 (N.D. Cal. Nov. 6, 2009). Defendants were additional insureds under a policy issued by Riverport. In its coverage action for declaratory judgment, Riverport secured an order awarding summary judgment that determined there
November 2009
Zealous Representation of Insurer’s Refusal to Defend Leads to Sanctions
By Tred R. Eyerly on
So much for the zealous representation of an insurer's denial of the duty to defend. This post at abajournal.com reports when the trial court rejected the insurer's argument it had no duty to defend, an appeal was filed before the Georgia appellate court. The appellate court found the appeal frivolous and sanctions of $2500…
Landlord Covered as Additional Insured under Tenant’s Policy
By Tred R. Eyerly on
An employee of Nava Restaurant was injured when he fell down the stairs while at work. He sued the property owner, Crescent One Buckhead Plaza, claiming negligent maintenance of the stairs. Crescent tendered the suit to Nava and its insurer, Transcontinental Insurance Company (TIC), based on the language of the lease and because Crescent was…
Allegations of Insurers’ Fraud for Katrina Flood Claims Survive Motion to Dismiss
By Tred R. Eyerly on
In an opinion primarily concerned with the intricacies of pleading under the False Claims Act, the Louisiana federal district court addressed allegations that insurers shifted Katrina claims from homeowners' to flood policies. See United States ex rel. Branch Consultants, L.L.C. v. Allstate Ins. Co., No. 06-4091, 2009 U.S. Dist. LEXIS 101155 (E.D. La. Oct. 19…
Motion for Remand Denied in Hurricane Ike Case
By Tred R. Eyerly on
Fourteen months after Hurricane Ike hit the Gulf coastline of Texas, the initial onslaught of litigation is starting to surface in reported decisions. Our first post of undoubtedly many Hurricane Ike cases to come addresses a motion for remand after a coverage dispute was removed to federal court. See Lakewood Chiropractic Clinic v. Travelers Lloyds Ins. …
Policy Covers Insured In Third Party Claim by Longshoreman
By Tred R. Eyerly on
Note today's post [here] by my Damon Key colleague, Mark Murakami, regarding coverage for a claim related to the Longshore Harbor and Workers Compensation Act. See Bayou Steel Corp. v. Evanston Ins. Co., No. 08-31206 (5th Cir. Nov. 10, 2009). The policy excluded coverage for injuries imposed on the insured by contract…
Statute of Limitations for Katrina Claim not Tolled by Insurer’s Negotiations
By Tred R. Eyerly on
In Landry Architecture, LLC v. Valley Forge Ins. Co., No. 09-3974, 2009 U.S. Dist. LEXIS 99109 (E.D. La. Oct. 23, 2009), the insured's claims for business income losses resulting from Hurricane Katrina and breach of the implied covenant of good faith and fair dealing did not survive the insurer's motion to dismiss on statute…
Default Judgment Against Insured Does Not Bar Injured Party from Pursing Coverage Case
By Tred R. Eyerly on
A default judgment against the insured should not deprive the injured party from pursuing the coverage litigation according to the Ninth Circuit's decision in Westchester Fire Ins. Co. v. Northwest Airlines, Inc., No. 07-17383, 2009 U.S. App. LEXIS 23718 (9th Cir. Oct. 28, 2009).
The insured provided maintenance services for Northwest Airlines at…
Assignee of Policy Must Comply with Request for Examination Under Oath
By Tred R. Eyerly on
Whether an assignee is required to respond to the insurer's invocation of an Examination Under Oath ("EUO") clause was at issue in Shaw v. State Farm Fire and Casualty Co., 2009 Fla. App. LEXIS 15930 (Fla. Ct. App. Oct. 23, 2009).
After the insured was involved in an auto accident, he received medical…
Delaware Court Delves into Anti-Assignment and Allocation Issues
By Tred R. Eyerly on
The Delaware Court of Chancery recently issued a detailed, scholarly opinion addressing anti-assignment provisions and the proper allocation for asbestos-related claims. See Viking Pump, Inc. v. Century Indemn. Co., 2009 Del. Ch. LEXIS 180 (Del. Ct. Ch. Oct. 14, 2009). Significantly, in determining the anti-assignment clauses did not bar assignment of the policies, the court departed from the reasoning…