Can an insured settle a disputed claim with its first party insurer and then sue the insurer for allegedly fraudulently inducing a settlement of the claim for less than it is worth? The California Supreme Court answered no in Village Northridge Homeowners Assoc. v. State Farm Fire and Cas. Co., 2010 Cal. LEXIS
CGL Exclusion for Auto Accidents Bars Coverage
An exclusion under a CGL policy for bodily injury arising out of automobile accidents prevented coverage when an employee was at fault. See Sprinkles v. Assoc. Indemn. Corp., 2010 Cal. App. LEXIS 1532 (Cal. Ct. App. Sept. 1, 2010).
Bibinz, an employee of Sinco, caused the accident, killing the deceased. The deceased's family
Exclusion for Roofing Excludes Liability for Claim Arising out of Re-Roofing
An exclusion for claims arising from roofing barred coverage when the underlying plaintiff was injured after falling from a scaffold. See Penn-America Ins. Co. v. Lavigne, 2010 U.S. App. LEXIS 17675 (1st Cir. Aug. 24, 2010).
Michael Daigle was hired to put a new roof on an apartment building and to seal some
Fifth Circuit Considers Business Interruption Coverage After Hurricane Katrina
The insured had a commercial property policy with Lexington. Coverage included $25 million in losses for business interruption. See Consolidated Co. Inc. v. Lexington Ins. Co., 2010 U.S. App. LEXIS 17146 (5th Cir. Aug. 17, 2010).
Hurricane Katrina damaged the insured's property and equipment. The insured was able, however, to resume partial operations ten days
Reimbursement of Defense Costs Proper Under Colorado Law
When the insured was sued for allegedly engaging in Medicare and Medicaid fraud, a defense was sought from the insurer. See Valley Forge Ins. Co. v. Zurich Am. Ins., 2010 U.S. App. LEXIS 17098 (10th Cir. Aug. 16, 2010). Once it was determined there was no duty to defend, was the insurer entitled
Burden of Proving Damage Caused by Both Covered and Non-Covered Risks Addressed
When both a covered risk and a non-covered risk cause some of the property damage, which party bears the burden of identifying the discrete items of property that were damaged and proving what portion of the damage was caused by a non-covered or excluded risk? See Bayle v. Allstate Ins. Co., 2010 U.S.
Mold Damage to Personal Property Covered
Although the insurer contended the Texas Supreme Court had previously decided that mold was never covered under a homeowner's policy, the Court found coverage for mold damage to personal property in State Farm Lloyds v. Page, 2010 Tex. LEXIS 415 (Tex. June 22, 2010).
The insured discovered mold and water damage to
New Damon Key Blog on Appellate Practice
Be sure to check out my Damon Key colleague's, Rebecca Copeland, new blog on appellate practice here [http://recordonappeal.typepad.com]. Rebecca will highlight current cases, events and topics in the area of appellate law. Rebecca launches her new blog today.
Documented Prior Knowledge of Defect Eliminates Coverage
Sorting out whether the contractor had coverage for alleged construction defects under the subcontractor's policies was the issue in Travelers Cas. and Sur. Co. v. Dormitory Auth., State of New York, 2010 U.S. Dist. LEXIS 79024 (S.D. N.Y. July 30, 2010).
Trataros Construction, Inc. was the general contractor on the project. Trataros contracted
Anti-Concurrent Causation Clause Does Not Bar Excess Coverage
The Fifth Circuit considered whether the district court properly determined that an excess policy covered flood, but that coverage was limited under the policy's anti-concurrent causation clause (post on district court's prior decision here). The appellate court reversed in part and remanded. Stewart Enter., Inc. v. RSUI Indem. Co., Inc., 2010 U.S. App. LEXIS 16555(5th