In a well reasoned decision, the Superior Court in California denied the insurer's motion for judgment on the pleadings on a business interruption claim arising from COVID-19. Boardwalk Ventures CA, LLC v. Century-National Ins. Co., et al., 2021 Cal Super. LEXIS 35 (Cal. Super. Ct. March 18, 2021). The decision is here
April 2021
California Federal District Court Denies, in Part, Insurer’s Motion to Dismiss COVID-19 Business Interruption Claim
By Tred R. Eyerly on
In another victory for policy holders on business interruption claims arising from COVID-19, the federal district court denied the insurer's motion to dismiss on one of two claims. Kingray Inc. v. Farmers Group Inc., et al., 2021 U.S. Dist. LEXIS 41300 (C. D. Cal. March 4, 2021).
Plaintiff Kingray Inc.…
Delaware Court Determines Coverage Under Directors and Officers Policy
By Tred R. Eyerly on
The Delaware Supreme Court affirmed the trial court's finding of coverage under the Directors and Officers policy. RSUI Indemn. Co. v. Murdock, 2021 Del. LEXIS 90 (Del. March 3, 2021).
In November 2013, Murdock, director and CEO of Dole Food Company, Inc., took the company private through a merger transaction in…
Claims against Broker for Insufficient Coverage Fail
By Tred R. Eyerly on
After a coverage dispute for damage caused by Hurricane Harvey was settled, the insured's claims against its insurance broker for providing insufficient coverage were dismissed. Hitchcock Indep. Sch. Dist. v. Arthur J. Gallagher & Co., 2021 U.S. Dist. LEXIS 57452 (S.D. Texas Feb. 26, 2021).
The School District suffered $3.5…
Dental Practice Survives Motion to Dismiss on COVID-19 Claim
By Tred R. Eyerly on
The insured dental practice survived a motion to dismiss its business interruption claim arising from closures due to the coronavirus pandemic. Derek Scott Williams PLLC v. Cincinnati Ins Co., 2021 U.S Dist. LEXIS 37096 (N.D. Ill. Feb. 28, 2021).
On March 22, 2020, the Texas governor issued an order postponing…
Insurer’s Motion to Dismiss COVID-19 Claim Denied
By Tred R. Eyerly on
The federal district court denied the insurer's motion to dismiss the hotel's claim for business interruption coverage. Sunstone Hotel Investors, Inc. v. Endurance Am. Spec. Ins. Co., No. SACV 20-02185, (C.D. Cal. Feb. 26, 2021).
From February 24 to 27, 2020, the insured hotel hosted an international meeting of leaders…
Hawaii Supreme Court to Hear Bad Faith Case
By Tred R. Eyerly on
The Hawaii Supreme Court has granted certiorari to hear an appeal from the Intermediate Court of Appeals decision in Carvalho v. AIG Hawaii Insurance Company, 148 Haw. 370, 477 P.3d 164 (Haw. Ct. App. 2020). A summary of the ICA decision is here. The ICA reversed the trial court's granting of summary…
No Duty to Defend Under Renter’s Policy
By Tred R. Eyerly on
The court agreed that the insurer had no potential liability under a policy where the insured allegedly concealed facts and made misrepresentations regarding the condition of the property it sold. State Farm Fire & Cas. Co. v. TFG Enterprises, LLC, 2021 Neb. LEXIS 27 (Neb. Feb. 19, 2021).
TFG sold…
Illinois Federal District Court Finds Duty to Defend COVID-19 Claim
By Tred R. Eyerly on
The federal district court found that the insurer had a duty to defend the underlying suit based on damages allegedly arising from exposure to COVID-19. McDonald's Corp. v. Austin Mutual Ins. Co., No. 20 C 5057, Order (N.D. Ill. Feb.22, 2021). The decision is here.
McDonalds was sued for…