Check out today's postover at hawaiioceanlaw.com where my Damon Key colleague, Mark Murakami, discusses a Katrina-related case in which the insured refused to accept the insurer's choice of defense counsel. The choice was risky because the Second Circuit relieved the insurer of having to pay defense costs.
2010
Guest Post: Surety Bonds
By Tred R. Eyerly on
The following guest post on surety bonds is provided by Kevin Kaiser of Surety Bonds.com, a nationwide bonding agency dedicated to educating people about surety bonds through their Surety Bond Education Program. (http://www.suretybonds.com/edu/). Five questions about bonds follow and are answered by Kevin.
1) What is a Surety Bond and How is…
Limitation Period Triggered When Policy’s Conditions Met, Not When Damage Occurs
By Tred R. Eyerly on
The issue in Fabozzi v. Lexington Ins. Co., 2010 U.S. App. LEXIS 7040 (2nd Cir. April 6, 2010), was whether the limitations period for suit against the insurer was triggered when damage to the insureds' home occurred or when all the conditions precedent to filing suit had been met.
When first issuing…
“Net Worth” Determined Under Hawai`i Insurance Guaranty Association Act
By Tred R. Eyerly on
Valuing an insured's "net worth" for determining eligibility for benefits under the Hawai`i Insurance Guaranty Association Act was before the court in C. Brewer and Company, Ltd. v. Hawaii Insurance Guaranty Assoc., 2010 Haw. App. LEXIS 200 (Haw. Ct. App. April 28, 2010).
C. Brewer bought excess workers' compensation insurance coverage from…
Indemnity Provision Invalid, But Obligation to Cover Additional Insured Upheld
By Tred R. Eyerly on
The court considered the validity of a contractual provision to provide insurance when the indemnity clause was deemed invalid. See Travelers Lloyds Ins. Co. v. Pacific Employers Ins. Co., 2010 U.S. App. LEXIS 7113 (5th Cir. April 6, 2010).
The landlord, The Centre, leased commercial property to the tenant, Best Buy Stores, Inc. Pursuant to the…
Insurer Must Defend Allegations of Failure to Disclose Chemical’s Dangerous Propensities
By Tred R. Eyerly on
Whether a duty to defend was triggered by allegations of the failure to disclose a chemical's dangerous characteristics was the issue in Shell Chemical L.P. v. Discover Prop. & Cas. Ins. Co., 2010 U.S. Dist. LEXIS 30143 (S.D. Tex. March 29, 2010).
Mission Petroleum was an interstate carrier delivering naphtha to one…
Additional Insured Denied Coverage After Named Insured Fails to Give Timely Notice
By Tred R. Eyerly on
After being sued in a personal injury action, Marc-Scot Realty (property owner) and Willie Construction, sought a defense as additional insureds under Arch Builder's (general contractor) liability policy. See Marc-Scot Realty Corp v. Praetorian Ins. Co., 2010 U.S. Dist. LEXIS 29380 (E.D. N.Y. March 26, 2010).
The court agreed Willie Construction was an…
Agent Not Liable for Failure to Procure Flood Insurance
By Tred R. Eyerly on
The insureds originally had flood coverage with Allstate. See Dennis v. Fidelity Nat. Prop. and Cas. Ins. Co., 2010 U.S. Dist. LEXIS 28759 (March 25, 2010). To reduce their premiums, the insureds requested their agent, Lyons Insurance, Inc., to obtain a new flood insurance policy on their home in May 2007. The insureds did not submit the required elevation…
Incidental Contract Exclusion Ambiguous
By Tred R. Eyerly on
In a brief opinion, a New York court found the insured contract provision ambiguous. See Majawalla v. Utica First Ins. Co., 2010 N.Y. App. Div. LEXIS 2510 (N.Y. App. Div. March 23, 2010).
Yashi Associates leased a store location to the insured. The lease required the lessee to maintain liability insurance for the…
Business-Interruption Costs Limited to Pre-Storm Revenues
By Tred R. Eyerly on
Measuring business interruption costs after Hurricane Katrina was the issue before the Fifth Circuit in Catlin Syndicate Ltd v. Imperial Palace of Mississippi, Inc., 2010 U.S. App. LEXIS 5389 (5th Cir. March 15, 2010).
The insured operated a casino that was damaged by Hurricane Katrina, forcing it to shut down for several…