A commentary on insurance coverage issues in Hawaii and beyond
The Ninth Circuit affirmed the district court's decision that the insured was not covered for a dispute over the salvage of a sunken ship. Great American Ins. Co. v. May, 2024 US App. LEXIS 10137 (9th Cir. April 26, 2024).
MK Salvage Ventures LLC (MK) attempted to recover lost treasure…
The excess carrier did to have to contribute to the defense and indemnity of the insureds because the dissolution of one of the primary carriers meant full exhaustion had not been accomplished. Continental Cas. Co., et al. v. Argonaut Ins. Co., et al., 331 Ore. App. 26 (Or. Ct. App. 2024).
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The court found that the insurer failed to meet its burden on summary judgment seeking a judgment that faulty workmanship precluded coverge. Auto-Owners Ins., Co. v. AAA Discount Homes, LLC, 2024 U.S. Dist. LEXIS 48463 (S.D. Ga. March 19, 2024).
Heather Way sued AAA Discount Homes, LLC and Delta Transport…
The California Court of Appeal affirmed the trial court's decision that the defending insurer was not entitled to reimbursement of defense costs from another insurer based upon a subcontract and additional insured endorsement. Zurich Am. Ins. Co. v. Old Republic Gen. Ins. Corp., 2024 Cal. App. Unpub. LEXIS 1261 (Cal. Ct. App.
The federal district court determined that the insurer was not obligated to defend construction defect claims under Kentucky law. Westfield Ins. Co. v. Kentuckiana Commercial Concrete, LLC, 2023 U.S. Dist. LEXIS 222674 (W.D. Ky. Dec. 14, 2023).
HRB, the owner of an apartment complex, filed an arbitration demand against the…
Reversing the trial court, the Wisconsin Court of Appeals found the insurer must defend a cross-claim against the insured owner of a building after an explosion occurred. LBC, LLC v Spectrum Brands, Inc., 2023 Wis. App. LEXIS 1251 (Wis. Ct. App, Nov. 30, 2023).
LBC leased commercial property to Spectrum.
The court granted the insured's motion to dismiss the insurer's action for a declaratory judgment on the issue of indemnity when the underlying action was still ongoing. Utica Mut. Ins. Co. v. Crystal Curtain Wall Sys. Corp., NYLJ LEXIS 3255 (N.Y. Sup. Ct. Dec. 1, 2023).
Crystal was a subcontractor…
The Hawaii Intermediate Court of Appeals (ICA) affirmed the trial court's finding that the insured Association of Apartment Owners (AOAO) was not liable for securing a policy with inadequating coverage. AOAO Queen Emma Gardens, et al v. Wa, 2023 Haw. App. LEXIS 400 (Haw. Ct. App. Dec. 19, 2023).
In…
The Illinois Supreme Court found that the underlying allegations addressing construction defects were sufficient to establish "property damage" caused by an "occurrence. "Acuity v. M/I Homes of Chicago, LLC, 2023 Ill. LEXIS 1019 (Ill. Nov. 30, 2023).
M/I Homes was the general contractor for a residential townhome development. The…
Answering a certified question, the West Virginia Supreme Court of Appeals adopted the continuous-trigger theory when interpreting occurrence based policies. Westfield Ins. Co. v. Sistersville Tank Works, Inc., 2023 W. Va. LEXIS 455 (W. Va. Nov. 8, 2023).
Sistersville Tank Work, Inc. ("STW") manufactured, installed, and repaired various types of tanks…
