We previously posted here and here on decisions by the Hawaii Intermediate Court of Appeal in Ahn v. Liberty Mutual Fire Ins. Co. and Kim v. Liberty Mutual Fire Ins. Co. As you recall, the issue in the two cases was whether the insured could seek administrative review when the insurer denied coverage or was the
Coverage Rejected Under Owned Property and Alienated Property Exclusions
The insured's request for a defense when sued in a construction defect action was denied under the owned property exclusion and the alienated property exclusion in 1777 Lafayette Partners v. Golden Gate Ins. Co., 2011 U.S. Dist. LEXIS 48562 (N.D. Cal. April 29, 2011).
In 1999, Lafayette Partners purchased an abandoned walnut processing
Court Decides Which Documents Insurer Can Withhold From Discovery
The insurers' resistance to discovery requests was before the court in Cummins, Inc. v. Ace Am. Ins. Co., et al., 2011 U.S.Dist. LEXIS 46984 (D. Ind. May 2, 2011).
The factual background involved coverage Cummins sought for severe flood damage at its main corporate campus. The insurers had paid over $91 million
Texas Court Decides Political Subdivisions Immune from Workers Comp. Retaliation Suits
Overruling its prior decision, the Texas Supreme Court held that newly enacted legislation did not waive governmental immunity for suits based on a political subdivision's alleged retaliation against an employee filing a workers compensation claim. See Travis Century Appraisal Dist. v. Norman, 2011 Tex. LEXIS 324 (Tex. April 29, 2011).
Ms. Norman started work for
South Carolina Legislature Defines “Occurrence” To Include Property Damage Arising From Faulty Workmanship
On May 17, 2011, South Carolina passed legislation to combat the restrictive interpretation of what constitutes an "occurrence" under CGL policies. S.C. Code Ann. sec. 38-61-70.
The legislation reversed a decision by the state's Supreme Court issued earlier this year. See Crossman Communities of North Carolina, Inc. v. Harleysville Mut. Ins. Co., 2011 W.L.
Stipulation Acknowledging Assignment of Proceeds Improperly Ignored by Trial Court
Determining that the trial court erred in finding no coverage whenthe assignee of a policy neglected to offer proof of the assignment, the Florida Court of Appeal reversed in Cent. Square Tarragon LLC v. Great Divide Ins. Co., 2011 Fla. App. LEXIS 5963 (Fla. Ct. App. april 27, 2011).
The named insured sold
Employer’s Bad Faith Claim against State Compensation Board Survives Demurrer
The insured employer adequately pled its claims against the California State Compensation Insurance Fund (SCIF), allowing it to survive a demurrer. Edward Carey Constr. Co. v. State Compensation Insurance Fund, 2011 Cal. App. LEXIS 457 (Cal. Ct. App. March 25, 2011, certified for publication April 20, 2011).
Edward Carey Construction Co. (CCC) had
2011 Hawaii Legislature Adjourns After Passing Several Insurance-Related Bills
The recently adjourned, 2011 session of the Hawaii Legislature passed several insurance-related bills to send to the Governor's desk. The bills are summarized below.
HB 519– Workers' Compensation
This measure excludes services performed by an individual who is a member of a limited liability company, a partner of a limited liability partnership who has
Policyholder Fails to Build Adequate Record to Support Bad Faith Claim
The importance of careful preparation and documentation was the take away lesson in a Texas bad faith case, C.K. Lee v. Catlin Specialty Ins. Co., 2011 U.S. Dist. LEXIS 19145 (S.D. Tex. Feb. 28, 2011).
C.K. Lee owned a commercial shopping center in Houston. Catlin issued a commercial property policy to Lee.
Mortgagor Not Liable For Failing to Procure Coverage
Failing to understand the relationship between himself, his mortgage company, and his insurer, the plaintiff was left without coverage for damage caused by Hurricane Katrina. Dace v. Novastar Mortgage Inc., 2011 La. App. Unpub. LEXIS 233 (La. Ct. App. April 13, 2011).
Novastar held the mortgage on the plaintiff's property in New Orleans. There were