A commentary on insurance coverage issues in Hawaii and beyond
The New Jersey Supreme Court considered the appropriate allocation for costs of the cleanup of contaminated property when one of the two insurers became insolvent. Farmers Mut. Fire Ins. Co v. N.J. Prop. Liab. Ins. Guar. Ass'n, 2013 N.J. LEXIS 902 (N.J. Sept. 24, 2013).
Newark Insurance Company issued a homeowner's policy…
The California Court of Appeals affirmed the trial court's denial of a motion to compel an appraisal in the midst of a suit filed after the insureds' property was destroyed by fire. Alexander v. Farmers Ins. Co., Inc., 219 Cal. App. 4th 1183 (Cal. Ct. App. Sept. 23, 2013).
The insureds held…
The court rejected the insurer's arguments that the business risk exclusions barred coverage for a contractor. Gen. Cas. Co. of Wisconsin v. Five Star Bldg. Corp., 2013 U.S. Dist. LEXIS 134122 (D. Mass. Sept. 19, 2013).
Five Star was hired by the University of Massachusetts to upgrade the ventilation (HVAC) system…
Judge Mollway, U.S. District Court Judge for the District of Hawaii, found the insurer was not in bad faith for allegedly leading its insured to believe that construction defects would be covered under the policy. The court, however, allowed the insured's negligent misrepresentation claim to survive summary judgment. Ill Nat'l Ins. Co v. Nordic …
The Florida Court of Appeals remanded the case after the insured was awarded an $8 million dollar judgment against its property insurer for hurricane and other damage to a home. Am. Home Assur. Co. v. Sebo, 2013 Fla. App. LEXIS 14799 (Fla. Ct. App. Sept. 18, 2013).
Sebo purchased his home in…
Claims that an insurance broker misrepresented coverage survived a motion to dismiss in a case decided by the New Jersey federal district court. Danho v. Fidelity Nat. Indemn. Ins. Co., Civil Action No. 2:13-CV-04547 (D. N.J. Sept. 25, 2013).
The insured's home was covered under a flood policy issued by and through…
The New Jersey Supreme Court held that one insurer could seek contribution from another insurer who settled with and secured a release from the insured. Potomac Ins. Co. v. Pennsylvania Manufacturers' Ass'n Ins. Co., 2013 N.J. LEXIS 847 (N.J. Sept. 16, 2013)
The township of Evesham retained Roland Aristone, Inc. to be…
The court determined that the policy's ensuing loss provision prevented the insurer's motion for summary judgment on coverage for repair of an elevator. Lloyd's Acceptance Corp. v. Affiliated FM Ins. Co., 2013 U.S. Dist. LEXIS 130405 (E.D. Mo. Sept. 12, 2013).
The insured managed an apartment building with four passenger elevators. After…
The Alabama Supreme Court followed prior precedent and found that the contractor's faulty workmanship causing damage to his own product did not arise from an occurrence. Owners Ins. Co. v. Jim Carr Homebuilder, LLC, 2013 Ala. LEXIS 122 (Ala. Sept. 20, 2013).
The plaintiffs contracted with Carr to construct a new home.
The California Supreme Court determined that insurance practices violating the state's Unfair Insurance Practices Act (UIPA) could support a claim under the state's unfair competition law (UCL). Zhang v. Superior Court, 57 Cal. 4th 353 (2013).
Zhang purchased a CGL policy from California Capital Insurance Company. She sued California Capital in a…
