Plaintiff sued her adjuster in state court after Hurricane Sandy caused flood damage to her home. Plaintiff alleged her insurance company paid her too much money based upon the adjusters' fradulent conduct. After defendants removed the case to federal court, the court granted plaintiff's motion to remand to state court. Brooks v. Foglio
Federal Court Finds Occurrence for Faulty Workmanship Under Virginia Law
The Federal District Court in Virginia found that allegations of faulty workmanship could arise from an occurrence. Nautilus Ins. Co. v. Strongwell Corp., 2013 U.S. Dist. LEXIS 79163 (W. D. Va. June 4, 2013).
Strongwell supplied certain fiberglass reinforced plastic materials to a subcontractor of Black & Veatch for a construction
Judge Posner Finds Exclusion Does Not Preclude Coverage for Injury to Construction Worker
The Seventh Circuit found that an "Injury to Employees, Contractors, and Employees of Contractors" exclusion was not applicable to bar coverage for injuries to a construction worker. Atlantic Casualty Ins. Co. v. Paszko Masonry, Inc., 2013 U.S. App. LEXIS 11561 (7th Cir. June 7, 2013).
The underlying plaintiff was an employee of a waterproofing
Homeowner’s Policy Does Not Cover Loss of Investment or Emotional Distress
The Maine Supreme Court found a homeowner's policy did not cover damages for loss of investment, undisclosed physical problems with the property, and emotional distress. Langevin v. Allstate Ins. Co., 2013 LEXIS Me 54 (Me. June 4, 2013).
The underlying plaintiffs sued the insured after purchasing his home for $315,000. The insured
Efficient Proximate Cause Doctrine Bars Coverage for Collapse of Building
The court rejected the insured's argument that there was coverage for the collapse of a building caused by water leakage (a covered peril) and landslide (an uncovered peril). Stor/Gard, Inc. v. Strathmore Ins. Co., 2013 U.S. LEXIS App. 11015 (1st Cir. May 31, 2013).
A severe rain storm caused soil to slide
Hawaii Court Determines Insurer Assigned to Claim Owes Duty of Good Faith and Fair Dealing
The Hawaii Supreme Court found that an insurer assigned a claim under the Hawaii Insurance Joint Underwriting Program (JUP) owed a duty of good faith and fair dealing to the insured. Willis v. Swain, 2013 Haw. LEXIS 210 (June 7, 2013). We previously posted on the Intermediate Court of Appeals decision [here
Failure to Comply with Sprinkler Endorsement Bars Coverage For Fire Damage
Despite its application stating otherwise, the insured's failure to install a sprinkler system in its building barred coverage for extensive damage caused by fire. American Way Cellular, Inc. v. Travelers Prop. Cas. Co. of Am., 2013 Cal. App. LEXIS 425 (Cal. Ct. App. May 30, 2013).
American Way contacted a broker, A&J
Connecticut Supreme Court Finds Faulty Work By Subcontractor Constitutes “Occurrence”
The U.S. District Court in Alabama certified a question to the Connecticut Supreme Court: Is damage to a project caused by faulty workmanship "property damage" resulting from an "occurrence"? With some qualification, the Connecticut Supreme Court answered in the affirmative. Capstone Building Corp. v. Am. Motorists Ins. Co., SC 18886 (Conn. June 11, 2013).
Duty to Defend Established Under Pollution Liability Policy
The Fifth Circuit affirmed the district court's holding that the pollution liability insurer owed a duty to defend a generating plant sued by the EPA. Louisiana Generating L.L.C. v. Illinois Union Ins. Co., 2013 U.S. App. LEXIS 9837 (5th Cir. May 15, 2013).
Louisiana Generating ("LaGen") was sued by the EPA for
Business Risk Exclusions Bar Coverage for Construction Defect Claims
The federal district court assumed there was "property damage" caused by an "occurrence," but found the business risk exclusions barred coverage for construction defect claims. Hubbell v. Carney Bros. Constr., 2013 U.S. Dist. LEXIS 68331 (D. Colo. May 13, 2013).
The plaintiffs entered a construction contract with the insured general contractor to build