In a dispute between two insurers regarding which had a duty to defend in the underlying lawsuit, the federal district court denied one insurer's motion to join the underlying plaintiff as a necessary party. Amerisure Ins. Co. v. Burlington Ins. Group, Inc., 2025 U.S. Distl LEXIS 144927 (N.D. Ill. July 29, 2025).
August 2025
Seventh Circuit Confirms that Appraisers May Determine Cause of Loss in Addition to Amount of Loss
By Tred R. Eyerly on
The Seventh Circuit affirmed the district court's ruling that the appraisers appointed under the policy provisions to establish the amount of loss could also find the cause of the loss. Mesco Manufacturing, LLC v. Motorists Mut. Ins. Co., 2025 U.S. App. LEXIS 18598 (7th Cir. July 25, 2025).
Mesco Manufacturing…
Insured’s Bad Faith Claims Survive Motion to Dismiss While Negligence Claim Fails
By Tred R. Eyerly on
The federal district court applying Kentucky law denied the insurer's motion to dismiss bad faith claims, but granted the motion for dismissal of the insured's negligence claim. Smith v. Am. Strategic Ins., 2025 U.S. Dist. LEXIS 140900 (W.D. Ky. July 23, 2025).
The Smiths purchased a homeowners policy from American…
Insurer Estopped from Denying Coverage Due to Confusion Regarding Who is the Insured
By Tred R. Eyerly on
The court denied the insurer's motion for summary judgment on its claim that a defense was not owed to an entity not named as the insured under the policy. Safeco Ins. Co. of Am. v. Order Denying Rip Van 898, LLC, 2025 U.S. Dist. LEXIS 139269 (D. Nev. July 22, 2025).
…
Federal Court Certifies Class Challenging State Farm’s Depreciation of Sales Tax When Calculating ACV
By Tred R. Eyerly on
The federal district court agreed that a challenge to State Farm's practice of depreciating sales tax when calculating actual cash value (ACV) benefits payments to policyholders could go forward as a class action. Pitkin, et al. v. State Farm Fire and Cas. Co., 2025 U.S. Dist. LEXIS 134948 (July 15, 2025, N.
Broker’s Motion to Dismiss Denied
By Tred R. Eyerly on
The curt denied the broker's motion to dismiss the insured's claim that the broker negligently failed to provide the requested coverage. The Paper Tigers, Inc. v. Arch Ins. Group, Inc., et al, 2025 US. Dist. LEXIS 128114 (N.D. Ill. July 7, 2025).
The Paper Tigers, Inc. (Plaintiff) specialized in reworking paper to meet…
Insurer Must Defend Additional Insured
By Tred R. Eyerly on
The federal district court determined that the insurer must defend the additional insured even though it was premature to determine whether there was also a duty to indemnify. Liberty Mutual. Fire Ins. Co. v. Acuity Mut. Inx. Co., 2025 U.S. Dist. LEXIS 121429 (D. Nev. June 26, 2025).
Royal…
Court Finds California FAIR Plan Unlawful
By Tred R. Eyerly on
The Superior Court granted summary judgment to a policy holder who was issued a policy by the California's insurer of last resort, known as the FAIR Plan. Aliff v. California FAIR Plan Association, No. 21STCV200095 (Super. Ct. California June 24, 2025).
Plaintiff sued the California Fair Plan Association (CFP) arguing…