In Del Monte Fresh Produce (Haw.), Inc. v. Fireman's Fund Ins. Co., 183 P.3d 734, 745 (Haw. 2007), the Hawaii Supreme Court held that recognizing the assignment of an insurance policy by operation of law to a party acquiring liabilities through contract was inconsistent with Hawaii law. Citing Del Monte, the Fifth Circuit
Assignment
Fifth Circuit Certifies Question to Louisiana Supreme Court on Assignment of Policies
By Tred R. Eyerly on
The Fifth Circuit asked the Louisiana Supreme Court whether a policy's anti-assignment clause prohibited post-loss assignments of policy rights. See In Re: Katrina Canal Breaches Litigation, 2010 U.S. App. LEXIS 15603 (5th Cir. July 28, 2010).
After Hurricanes Katrina and Rita, Louisiana distributed federal funds to homeowners under its "Road Home" program for repair…
Merger Statute’s Impact on Anti-Assignment Clause Considered
By Tred R. Eyerly on
The Fourth Circuit recently asked the West Virginia Supreme Court of Appeals whether a state law stating that contract rights vest in the survivor of a merger nullified a non-assignment provision in an auto policy that was transferred to a successor corporation. See State Auto Prop. and Cas. Ins Co., No. 08-1481, 2009…
Assignee of Policy Must Comply with Request for Examination Under Oath
By Tred R. Eyerly on
Whether an assignee is required to respond to the insurer's invocation of an Examination Under Oath ("EUO") clause was at issue in Shaw v. State Farm Fire and Casualty Co., 2009 Fla. App. LEXIS 15930 (Fla. Ct. App. Oct. 23, 2009).
After the insured was involved in an auto accident, he received medical…
Delaware Court Delves into Anti-Assignment and Allocation Issues
By Tred R. Eyerly on
The Delaware Court of Chancery recently issued a detailed, scholarly opinion addressing anti-assignment provisions and the proper allocation for asbestos-related claims. See Viking Pump, Inc. v. Century Indemn. Co., 2009 Del. Ch. LEXIS 180 (Del. Ct. Ch. Oct. 14, 2009). Significantly, in determining the anti-assignment clauses did not bar assignment of the policies, the court departed from the reasoning…
Reconsideration of Decision Upholding Transfer of Policies Upheld Despite Anti-Assignment Provisions
By Tred R. Eyerly on
We previously reviewed Pilkington N.A. Inc. v. Travelers Cas. & Sur. Co., 2009 U.S. Dist. LEXIS 67291 (N.D. Ohio July 27, 2009) [here], where the court determined there was coverage for a successor corporation under the predecessor's CGL policy despite the policies' anti-assignment provision. In the recent sequel, the court denied the insurers'…
Assignment Policy’s Rights, as Opposed to Policy Itself, Upheld
By Tred R. Eyerly on
The validity of an assignment of policy rights was at issue in Isles Wellness, Inc. v. Progressive Ins. Co., A09-0119, 2009 Minn. App. Unpub. LEXIS 1051 (Minn. Ct. App. Sept. 15, 2009).
The plaintiff clinics provided treatment to the insured patients who had automobile coverage with Progressive and Allstate. In 2003, the clinics…
Auto Glass Repair Companies Seek Reimbursement from Insurers After Assignment of Policies
By Tred R. Eyerly on
The amount of reimbursement owed to auto glass repair companies by the insurer was the issue presented in Auto Glass Express, Inc. v. Hanover Ins. Co., 975 A.2d 1266 (Conn. Aug. 25, 2009).
The insureds' policies provided reimbursement of the "amount necessary to repair or replace broken glass of like kind and quality." …
No Occurrence Where Insured Has Knowledge of Defective Manufacturing Process
By Tred R. Eyerly on
Coverage for an underlying suit involving an alleged defective product was the issue in the detailed, narrative findings of fact and conclusions of law issued by the district court in National Union Fire Ins. Co. of Pittsburgh, Pa. v. Puget Plastics Corp., No. B-05-050, 2009 U.S. Dist. LEXIS 70723 (S.D. Tex. Aug. 12…
Choses-In-Action Transferred to Successor Despite Anti-Assignment Provision
By Tred R. Eyerly on
In Pilkington N.A. Inc. v. Travelers Cas. & Sur. Co., No. 3:01CV7617, 2009 U.S. Dist. LEXIS 67291 July 27, 2009), the District Court determined there was coverage for a corporate successor under the predecessor's CGL policy after an asset transfer. We previously reviewed here various cases addressing the impact of the anti-assignment provision in CGL…