As homeowners on the Big Island contemplate pursuing claims due to loss caused by volcanic eruption or lava flow, SuperLawyers has a post addressing some of my thoughts on the issue. The post is here.
July 2018
Arizona Upholds Assignment of Post-Loss Benefits
The Arizona Court of Appeals upheld the insured's assignment of benefits despite the policy's anti-assignment provision. Farmers Ins. Exchange v. Honorable David Udall, 2018 Ariz. Ct. App. LEXIS 94 (Ariz. June 12, 2018).
Farmers issued homeowners' policies to four homeowners who later required water damage mitigation and restoration services. Each…
Connecticut Supreme Court Again Asked to Determine the Meaning of Collpase
Faced with a series of policies, earlier ones which did not define collapse, newer policies which did, the court determined there was a possibility of coverage under the older policies which did not define collapse. Vera v. Liberty Mut. Fire Ins. Co., 2018 U.S. Dist. LEXIS 100548 (D. Conn. June 15, 2018).…
Insurer’s Summary Judgment Motion to Reject Claim for Construction Defects Upheld
The Third Circuit upheld the district court's order granting summary judgment in favor of the insurer on a claim seeking coverage for construction defects. Lenick Constr. v. Selective Way Ins. Co., 2018 U.S. App. LEXIS 15197 (3d Cir. June 6, 2018).
Westrum was the general contractor for a 92 unit…
Insurer’s Motion to Dismiss Allegations of Collapse Rejected
In yet another of the collapse cases being litigated in state and federal courts in Connecticut, the federal district court denied the insurer's motion to dismiss. Rosenberger v. Amica Mut. Ins. Co., 2018 U.S. Dist. LEXIS 95345 (D. Conn. June 6, 2018).
The insureds had policies with Amica since 1989.
Broker’s Motion for Summary Judgment on Negligence Claim Denied
After being sued for negligence for failing to secure proper coverage, the broker was unsuccessful in seeking dismissal by way of summary judgment. Liverman Metal Recycling, Inc. v. Arthur J. Gallagher & Co., 2018 U.S. Dist. LEXIS 87957 (E.D. N.C. May 25, 2018).
Plaintiffs were two companies, Empire and Liverman…
California Supreme Court Finds Negligent Supervision Claim Alleges An Occurrence
Answering a question posed by the Ninth Circuit, the California Supreme Court found that a suit against a employer for negligent hiring, retention and supervision of a employee who intentionally injures a third party alleges an occurrence under a CGL policy. Liberty Surplus Co. Corp. v. Ledesma & Meyer Construction Co., 2018 Cal.
Loss Caused by Fraudulent Transfer Not Covered by Computer Fraud Policy
The Eleventh Circuit affirmed the denial of coverage under a Computer Fraud policy. Interactive Communications International, Inc. v. Great American Ins. Co., 2018 U.S. App. LEXIS 12410 (11th Cir. May 10, 2018).
Great American issued a Computer Fraud policy to Interactive Communications International, Inc. (InComm). InComm sells "chits" to consumers, who…
Question Certified to Connecticut Supreme Court on Meaning of Collapse
Connecticut courts have been swamped with cases seeking coverage for collapse caused by faulty cement. In a recent decision, the federal district court asked the Connecticut Supreme Court to determine what constitutes substantial impairment of structural integrity for applying the collapse provision of a policy. Karas v. Liberty Ins. Corp., 2018 US.