A commentary on insurance coverage issues in Hawaii and beyond
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…
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…
The case before the Ninth Circuit asked whether the pollution exclusion applied to carbon monoxide poisoning. See Cent. Sur. Co. v. Casino West., Inc., 2012 U.S. App. LEXIS 56958 (9th Cir. April 6, 2012). The accident occurred in a Nevada casino and hotel owed by Casino West.
The fumes were created by a…
The issue before the 11th Circuit was whether, under Florida law, a general contractor had coverage for a property damage claim limited to the defective work performed by a subcontractor, and not affecting any other portion of the project. The court found no coverage in Amerisure Mut. Ins. Co. v. Auchter Co., 2012 U.S.
In an entertaining decision authored by Judge Posner, the Seventh Circuit affirmed the district court's denial of coverage based upon the pollution exclusion. Scottsdale Indem. Co. v. Village of Crestwood, 2012 U.S. App. LEXIS 5069 (7th Cir. March 12, 2012).
In 1985, Crestwood's mayor and other Village officials learned from state environmental authorities…
Faced with an issue of first impression in California, the Court of Appeals held that a broker was not liable for failing to reveal the insurer's insolvency occurring after issuance of the policy. Pacific Rim Mechanical Contractors, Inc. v. Aon Risk Ins. Serv. West, Inc., 2012 Cal. App. LEXIS 232 (Cal. Ct. App. Feb. 28…
Here is an article I authored in this month’s Hawaii Bar Journal entitled, “The Battle Over Coverage For Construction Defects.” The premise of the article is that while the Intermediate Court of Appeals held in Group Builders, Inc. v. Admiral Ins.Co.,123 Haw. 142, 213 P.3d 67 (Haw. Ct. App. 2010) that construction defects do…
Although it was an additional insured under the tenant's commercial general liability policy, the landlord was not entitled to a defense for injury arising out of property other than the leased property. See VBH Luxury, Inc. v. 940 Madison Assoc. LLC, 2012 N.Y. LEXIS 217 (N.Y. Feb. 14, 2012).
The landlord was an additional insured…
Charles and Valerie Myers hired Perry Miller to build their home. Myers v. United Ohio Ins. Co., 2012 Ohio App. LEXIS 287 (Ohio Ct. App. Jan. 26, 2012). After completion of the home, Miller was again hired to construct an addition which included a full basement, staircases, bathroom, bedroom, hallway and garage.
After the…
In a brief decision, the federal district court denied the insurer's motion for summary judgment on the insured's bad faith claims. Gulf Prod. Co. Inc. v. Hoover Oilfield Supply, Inc., 2012 U.S. Dist. LEXIS 3390 (E.D. La. Jan. 11, 2012).
The insured was sued for a defective flowline that allegedly splayed when pressure tested below…
