The Washington Supreme Court reversed the Court of Appeals' decision that the ensuing loss provision provided coverage for a deck that collapsed due to rot and decay. Sprague v. Safeco Ins. Co. of Am., 2012 Wash. LEXIS 375 (Wash. May 17, 2012). Our prior post on the Court of Appeals' decision is here
Anti-Concurrent Causation Clause Prevents Coverage for Water Damage
Plaintiff owned a restaurant in downtown Nashville, Tennessee. Historic flooding occurred in May 2010,which included the flooding of of the Cumberland River in downtown Nashville. Plaintiff contends that on May 4, 2010, water began seeping up through the sewer lines into the business. OBE Insurance Corporation denied coverage.
The policy excluded losses "caused
No Coverage for Construction Defects Under Alabama Law
The federal district court determined that under Alabama law, there was no coverage for breach of contract claims arising from alleged construction defects. Owners Ins. Co. v. Shep Jones Constr., Inc., 2012 U.S. Dist. LEXIS 62085 (N.D. Ala. May 3, 2012).
The insured entered a contract with the homeowner to remodel her
Insured Released from Duty to Cooperate Where Insurer Denies Claim
The insured's duty to cooperate after the insurer initially denies the claim but later agrees to defend under reservations was the issue in Travelers Prop. Cas. Co. of Am. v. Fid. & Guar. Ins. Co., 2012 U.S. Dist. LEXIS 65834 (N.D. Cal. May 10, 2012).
Centex Homes developed several residential communities, subcontracting
Provision Providing Policy Not Applicable If Other Insurance Available Does Not Excuse Insurer’s Denial of Coverage
In a battle between two insurers, one insurer's reliance upon its policy's escape provision did not excuse its failure to contribute to the insured's defense and an eventual settlement. See W. World Ins. Co. v. Markel Am Ins. Co., 2012 U.S. App. LEXIS 9335.
The underlying plaintiff was injured when he fell down an elevator
Anti-Concurrent Causation Clause Bars Coverage for Landslide and Water Leak
The insured unsuccessfully attempted to get around the policy's anti-concurrent causation clause by arguing a covered cause of loss was a contributing factor. See Stor/Gard, Inc. v. Strathmore Ins. Co., 2012 U.S. Dist. LEXIS 63217 (D. Mass. May 4, 2012).
A building at the insured's storage facility was damaged when heavy rain caused a
Only One Insurance-Related Bill Passed By Hawaii In 2012 Legislative Session
In February, shortly after the Hawaii legislature convened for this year's session, we reported here on several pending insurance-related bills. The 2012 legislature ended on May 3, 2012, passing only one insurance-related bill, S.B. No. 2009.
S.B. No. 2009 provides new provisions to the Insurance Code to regulate the use of claims history information by insurers for homeowners
Third-Party Beneficiary of Policy Can Maintain Bad Faith Action against Insurer
The Wisconsin Court of Appeals acknowledged that the third-party beneficiary of a policy has a right to sue the insurer for bad faith. See Meleski v. Schbohm LLC, 2012 Wis. App. LEXIS 343 (Wis. Ct. App. May 1, 2012)
Plaintiff fell and injured herself on the insured's property. The insured's policy promised to "pay medical
Bad Faith Claim Denied after Untimely Request for Loss of Personal Property
Although the insured recovered from her insurer for property damage caused by Hurricane Katrina, her claim for loss of personal property was denied because it was not timely submitted. See Williams v. Louisiana Citizens Fair Plan, 2012 La. App. LEXIS 599 (May 2, 2012).
After the hurricane struck, Louisiana Citizens paid the
Insurer Must Defend Claims for Diminution in Value of Damaged Property
The insurer's duty to defend a developer sued by purchasers of homes for damages for diminution in value of homes was at issue in Mid-Continent Cas. Co. v. Academy Dev., Inc., 2012 WL 1382459 (5th Cir. April 20, 2012).
In the underlying action, plaintiffs alleged the developer knew when it sold the