Facing an issue of first impression, the West Virginia Supreme Court ruled that property damage caused by either a man-made or a natural cause was excluded under the Insurance Service Office's 2013 earth movement endorsement. Erie Ins. Prop. & Cas. Co. v. Chaber, 2017 W. Va. LEXIS 430 (W. Va. June 1
Debris Removal Not Available When Flood Damage Exceeds Policy Limits
The court considered whether debris removal coverage in a surplus lines policy applied in conjunction with an endorsement limiting flood coverage for all losses "resulting from Flood to buildings, structures or property." Oxford Realty Group Cedar v. Travelers Excess and Surplus Lines Co., 2017 N.J. LEXIS 570 (N.J. May 25, 2017).
Motion to Dismiss Insurer’s Counterclaim for Construction Defects Is Granted
The court granted the insured's motion to dismiss the insurer's counterclaim arising out of construction defects. Centrex Homes v. Zurich Specialties London Limited, et al., 2017 U.S. Dist. LEXIS 77212 (D. Nev. May 19, 2017).
Centrex, the general contractor, was sued by homeowners in a residential development known as Liberty
Dispute Over Coverage for Snow Removal and Related Damage Survives Insurer’s Summary Judgment Motion
The federal district court largely denied the insurer's motion for summary judgment seeking a judgment of no coverage for snow removal and related property damage. Thurston Foods v. Wausau Bus. Ins. Co., 2017 U.S. Dist. LEXIS 74935 (D. Conn. May 17, 2017).
The insured was a food distributor with a
Failure to Timely File Suit in Federal Court for Flood Loss is Fatal
Although the insureds timely filed their suit for denial of flood benefits in state court, the Fourth Circuit found the lawsuit against the Insurer was untimely because it was not filed in federal district court. Woodson v. Allstate Ins. Co., 2017 U. S. App. LEXIS 7862 (4th Cir. May 3 , 2917).
Insurer Must Defend Claims of Alleged Willful Coal Removal
The court found that the insured was entitled to a defense against claims for its alleged willful removal of coal from third parties' land. Liberty Mut. Fire Ins. Co. v. Bizzack Constr, 2017 U.S. Dist. LEXIS 70285 (W.D. Va. April 27, 2017).
The Virginia Department of Transportation (VDOT) contracted with Bizzack to perform work
Buyer’s Demolishing of Insured’s Home Not Barred by Faulty Construction Exclusion
Loss of the insured's home caused by a renter who demolished the home was covered under the homeowner's policy. Fisher v. Garrison Prop. & Cas. Ins. Co., 2017 Idaho LEXIS 143 (Idaho May 26, 2017).
The insured, Shammie L. Fisher, entered a Purchase Agreement to sell her home to Ron Reynoso. The purchase of
Hawaii Health Insurer Has No Equitable Subrogation Against Third-Party Tortfeasor
The Hawaii Supreme Court held that a health insurer did not have subrogation rights against third-party tortfeasors who caused injury to its insureds. Yukumoto v. Tawarahara, 2017 Haw. LEXIS 92 (Haw. May 26 2017).
Gregory Yukumoto was injured while driving his moped and struck by Ruth Tawarahara, driving her SUV.
Occurrence is Covered Where Pollution Event Is Not Efficient Proximate Cause Of Loss
Although the policy excluded pollution, the negligence that preceded the escape of the pollution was the efficient proximate cause, negating the impact of the pollution exclusion. Xia v. ProBuilders Specialty Ins. Co. RRG, 2017 Wash. LEXIS 443 (Wash. April 27, 2017).
Zhaoyun Xia purchased a new home in May 2006.
Accident Established by Res Ipsa Loquitur Is An Occurrence
The Massachusetts Appeals Court determined that scallops damaged by a cause never determined by the underlying court was sufficient to establish an occurrence under the insured's CGL policy. The Hanover Ins. Group, Inc. v. Raw Seafoods, Inc., 2017 Mass App. LEXIS 49 (Mass. Ct. App. April 26, 2017).
The insured, Raw Seafoods, Inc. (RSI) had