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
2009
Reconsideration of Decision Upholding Transfer of Policies Upheld Despite Anti-Assignment Provisions
We previously reviewed Pilkington N.A. Inc. v. Travelers Cas. & Sur. Co., 2009 U.S. Dist. LEXIS 67291 (N.D. Ohio July 27, 2009) [here], where the court determined there was coverage for a successor corporation under the predecessor's CGL policy despite the policies' anti-assignment provision. In the recent sequel, the court denied the insurers'…
Blog Challenge for Law Students
Lexis Nexis Insurance Law Center is sponsoring a blog challenge for law students who wish to submit a post about the insurance topic of their choice. Prizes include an Amazon Kindle, a complimentary subscription to the New Appleman on Insurance Law Library Edition, and a spot on the Insurance Law Center's New Appleman blogging team. The …
Settlement for Hurricane Destruction Not Upset by Insurer’s Additional Payment
Can an insured who settles with the insurer pursuant to a mediation program later reject the settlement and seek additional coverage? The Fifth Circuit denied such relief to the insured in Wiley v. State Farm Fire and Cas. Co., No. 09-60191 (5th Cir. Oct. 9, 2009).
The insured's home was reduced to…
Dismissal of Excess Carriers Reversed
The insured Condominium Association had primary and excess coverage. See El-Ad Residences at Miramar Condo. Assoc. v. Mt. Hawley Ins. Co., 2009 U.S. Dist. LEXIS 92216 (S.D. Fla. Sept. 24, 2009). Significant property damage was caused by Hurricane Wilma. The insured alleged that three years after the hurricane, the insurers failed to adjust…
Helicopter Crash Not Covered as “Common-Carrier Accident”
When plaintiff's husband was killed in a helicopter accident while being transported to work in the Gulf of Mexico, the insurer paid $40,000 under the "Other Accident" provision of the accident insurance policy instead of $150,000 under the "Common-Carrier Accidents" provision. See Smith v. American Family Life Assurance Co. of Columbus, No. 08-31032…
Insurer Must Defend Claims for Emotional Distress
In Kreger v. General Steel Corp, No. 07-575, 2009 U.S. Dist. LEXIS 88074 (E.D. La. Sept. 23, 2009), the federal district court in Louisiana was placed in a difficult position of predicting whether a Colorado Supreme Court would find a duty to defend a claim for emotional distress.
In the underlying suit, plaintiff sought…
Corban Presents Well-Reasoned Analysis of Anti-Concurrent Causation Clause
Having now read the full Corban decision, I am impressed with the clarity of the analysis set forth in the opinion. See Corban v. United Services Automobile Assoc., 2009 Miss LEXIS 481 (Miss. Sup. Ct. Oct. 8, 2009). The Mississippi Supreme Court carefully considered the facts, offered a common sense analysis to the…
Mississippi Supreme Court Rules Anti-Concurrent Causation Clause Inapplicable
The Biloxi Sun Herald reports here that the Mississippi Supreme Court reversed today the trial court in Corban v. United Serv. Auto., No. 2008-IA-00645-SCT (Miss. Sup. Ct. Oct. 8, 2009). We previously reviewed the Corbin case here, here and here. The unanimous decision of the Mississippi Supreme Court is here.
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Federal Court Without Jurisdiction Where Policy is not a Maritime Contract
Whether the federal court has jurisdiction over a coverage dispute of a purported maritime policy was the issue in New Hampshire Ins. Co. v. Home Savings and Loan Co. of Youngstown, Ohio, No. 08-3902, 2009 U.S. App. LEXIS 21133 (6th Cir. Sept. 24, 2009).
National Marine, a yacht dealer and marina operator, purchased…