We previously reviewed Pilkington N.A. Inc. v. Travelers Cas. & Sur. Co., 2009 U.S. Dist. LEXIS 67291 (N.D. Ohio July 27, 2009) [here], where the court determined there was coverage for a successor corporation under the predecessor's CGL policy despite the policies' anti-assignment provision. In the recent sequel, the court denied the insurers'
Comprehensive General Liability
Fifth Circuit Considers Subsidence and “Your Work” Exclusions
The subsidence and "your work" exclusions were before the court in Wilshire Ins. Co. v. RJT Construction, LLC, No. 08-50925, 2009 U.S. App. LEXIS 19409 (5th Cir. Aug. 26, 2009).
Wilshire insured RJT under two consecutive CGL policies from June 2004 to June 2006. In 1999, RJT repaired the foundation of the home after…
No Occurrence Where Insured Has Knowledge of Defective Manufacturing Process
Coverage for an underlying suit involving an alleged defective product was the issue in the detailed, narrative findings of fact and conclusions of law issued by the district court in National Union Fire Ins. Co. of Pittsburgh, Pa. v. Puget Plastics Corp., No. B-05-050, 2009 U.S. Dist. LEXIS 70723 (S.D. Tex. Aug. 12…
Exception to Insured Contract Does Not Apply in Construction Defect Case
In Century Surety Co. v. Hardscape Construction Specialties Inc., No. 06-10930 (5th Cir. Aug. 7, 2009) [here], the court considered whether the exclusion for assumed liability under a contract was applicable.
Hardscape contracted to construct a swimming pool facility for Hillwood Residential Services, L.P. Hardscape agreed to indemnify and hold…
Choses-In-Action Transferred to Successor Despite Anti-Assignment Provision
In Pilkington N.A. Inc. v. Travelers Cas. & Sur. Co., No. 3:01CV7617, 2009 U.S. Dist. LEXIS 67291 July 27, 2009), the District Court determined there was coverage for a corporate successor under the predecessor's CGL policy after an asset transfer. We previously reviewed here various cases addressing the impact of the anti-assignment provision in CGL…
Insurer Must Defend and Indemnify Trust Fund Established by Bankruptcy Court
In National Union Fire Ins. Co. of Pittsburgh, Pa. v. Porter Hayden Co, No. AMD-03-23408, 2009 U.S. Dist. LEXIS 61992 (D. Md. July 7, 2009), National Union contended that its insured, Porter Hayden, a debtor in bankruptcy, was not entitled to a defense or indemnity for asbestos-related claims.
Porter Hayden sold and…
Allegations in Underlying Complaint Entitle Additional Insured to Defense
The Fifth Circuit vacated and remanded the district court's conclusion that the insurer was not obligated to defend or indemnify an additional insured after sued by a person allegedly injured in the insured's casino when falling off a stool. See Barden Mississippi Gaming LLC v. Great Northern Ins. Co., No. 08-60521, 2009 U.S. App. LEXIS…
Hawai`i Supreme Court Asked to Interpret Pollution Exclusion
No Hawai`i appellate court has ever interpreted the meaning of the CGL policy's pollution exclusion. The Ninth Circuit recently issued an Order certifying a question to the the Hawai`i Supreme Court regarding its interpretation of the pollution exclusion. See Apana v. TIG Ins. Co., No. 08-15369 (9th Cir. July 15, 2009) [here…
No Coverage for Damage to Cotton in Insured’s Care, Custody and Control
Acknowledging that the insured's cotton was damaged by an occurrence, the Eighth Circuit nonetheless affirmed the district court's denial of coverage based upon an exclusion. See Michigan Millers Mut. Ins. Co. v. DG&D Co., Inc., No. 08-2699, 2009 U.S. App. LEXIS 14236 (8th Cir. July 1, 2009).
The insured operated a cotton gin. After delivering 50,000…
Supreme Court Bars Further Asbestos Claims Against Insurer
In the term's insurance-related case, the United States Supreme Court held that additional suits were barred against an insurer that participated in a 1986 settlement of asbestos claims and contributed to a trust fund. See Travelers Indemn. Co. v. Bailey, No. 08-295 (U.S. June 18, 2009) [here]. We previously reviewed the Travelers case…