In a sensitive opinion incorporating several redactions, apparently due to national security issues, the court found that the business risk exclusions raised by the insurer did not apply in determining whether there was a duty to defend. Innovative Mold Solutions v. All Am. Ins. Co., 2016 U.S. Dist. LEXIS 91671 (D. Mass. July 12, 2016).
Bad Faith Damages Awarded for Claims Handling
The insureds prevailed at trial in securing an award for bad faith due to the insurer's unreasonable handling of the claim. Taladay v. Metro. Group Prop. & Cas. Ins. Co., 2016 U.S. Dist. LEXIS 87659 (W.D. Wash. July 6, 2016).
Rosemarie Taladay had a homeowners policy with MetLife. After her death
Insurer’s Subrogation Rights Confirmed
The First Circuit reversed the District Court's holding that the insurer's subrogation rights were waived based on a clause in the condominium's bylaws. Pacific Indemnity Co. v. Deming, 2016 U.S. App. LEXIS 12374 (1st Cir. July 5, 2016).
Deming rented a unit in the condominium under a lease with the unit's owners. He fell
Determining Duty to Defend in Wisconsin Does Not Include Extrinsic Evidence
The policyholder's attempt to extend the duty to defend analysis beyond the complaint's allegations and the four-corners of the policy failed before the Wisconsin Supreme Court. Water Well Solutions Service Group Inc. v. Consolidated Ins. Co., 2016 Wisc. LEXIS 163 (Wis. Sup. Ct. June 30, 2016).
Waukesha Water Utility contracted
Insurer Must Defend Injury Caused by Shooting of Gun Thought to be Unloaded
The court denied the carrier's motion for summary judgment, seeking to establish it had no duty to defend or indemnify. Allstate Ins. Co. v. Tarantino, 2016 U.S. Dist. LEXIS 81713 (D. Conn. June 23, 2016).
The insured's son was at a friend's house. He found an air gun, aimed the gun at the floor
Presentation on Coverage for Construction Defects
I am invited to speak before the Honolulu Association of Insurance Professionals at the monthly meeting September 13, 2016. The topic will be "Coverage for Construction Defects – Hawaii Departs from the Emerging Trend."
The meeting will be at the Island Insurance Meeting Hall, 1022 Bethel St., Honolulu. All are invited, but please RSVP to pr@haipro.org.
Following Pennsylvania Law, District Court Determines No Coverage for Construction Defect Claim
Bound by well-established case law in Pennsylvania, the federal district court ruled that there was no coverage for alleged faulty workmanship. Peerless Ins. Co. & Ohio Sec. Ins. Co. v. Manown Builders, 2016 U.S. Dist. LEXIS 85261 (W.D. Pa. June 30, 2016).
Manown was sued by the homeowners after they noticed in
Motion to Dismiss Coverage and Defense Under Umbrella Policies Denied
The court denied National Union's motion to dismiss the insured's suit to compel a defense under the umbrella policies. San Diego Unified Port Dist. v. Nat'l Union Fire Ins. Co., 2016 U.S. Dist. LEXIS 88362 (S. D. Cal. July 6, 2016).
National Union sold the insured primary and umbrella policies, promising to defend and
Business Interruption Caused by Wildfire Smoke Covered
The federal district court predicted that business interruption caused by smoke from a nearby wildfire would be covered under Oregon law. Oregon Shakespeare Festival Assoc. v. Great Am. Ins.. Co., 2016 U.S. Dist. LEXIS 74450 (D. Ore. June 7, 2016).
The insured operated the Shakespeare Festival in three venues, one of which was an
Duty to Defend Public Adjuster Not Resolved By Motion
The insurer unsuccessfully moved for a determination that it had no duty to defend a public adjuster. Singer v. Continental Cas. Co., 2016 U.S. Dist. LEXIS 82286 (E.D. Pa. June 24, 2016).
Plaintiffs in the underlying action alleged that the public adjuster, Brian Singer, negligently performed his duties while assessing and inspecting a claimed loss