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
Comprehensive General Liability
Ninth Circuit Affirms Reimbursement and Prejudgment Interest to Insurer
By Tred R. Eyerly on
The Ninth Circuit recently affirmed the district court's decision granting reimbursement and prejudgment interest on amounts paid to the insured for defense and settlement pursuant to a reservation of rights. See Evanston Ins. Co. v. OEA, Inc., No. 07-15316 (9th Cir. May 21, 2009)[here].
OEA acquired a claims-made policy from Evanston Insurance Company in 1998. The…
Coverage Denied for Subcontractor’s Defective Work
By Tred R. Eyerly on
Coverage for a subcontractor's defective work was the issue presented in Westfield Ins. Co. v. Sheehan Constr. Co., No. 08-3463, 2009 U.S. App. LEXIS 9021 (7th Cir. April 29, 2009).
Moisture problems were found in a residential subdivision for which Sheehan was the general contractor. An investigation determined defective work by one of Sheehan's…
Business Risk Exclusions Not Applicable For Damage To Building Caused By Installation of Carpet
By Tred R. Eyerly on
Exclusions (k) and (m) in comprehensive general liability policies were the focus of a recent decision from the First Circuit. See Essex Ins. Co. v. BloomSouth Flooring Corp., No. 06-2750, 2009 U.S. App. LEXIS 7896 (1st Cir. April 16, 2009) [here].
Boston Financial Data Services (BFDS) hired Suffolk Construction Corporation as general …
No Duty to Defend Excavation Damage Under Contractor-Subcontractor Exclusion
By Tred R. Eyerly on
In Nautilus Ins. Co. v. 1452 N. Milwaukee Avenue, LLC, No. 07-3147 (7th Cir. April 7, 2009) [here], the Seventh Circuit found there was no duty to defend a land owner causing property damage based on the contractor-subcontractor exclusion.
When excavating its property and demolishing a building thereon, 1452 LLC damaged a neighboring…
Tenth Circuit Enforces Anti-Assignment Provision
By Tred R. Eyerly on
Our last post [here] summarized a case in which the Ninth Circuit found the anti-concurrent provision to be ambiguous. See Alexander Mfg., Inc. v. Illinois Union Ins. Co., No. 07-35812 (9th Cir. March 25, 2009) [here]. Today we review a case in which the anti-assignment provision was strictly construed…
Insurer Must Defend Until Jury Determines No Duty to Indemnify
By Tred R. Eyerly on
In Emhart Indus., Inc. v. Century Indemn. Co., No. 07-2806 (1st Cir. March 13, 2009)[here], the First Circuit found a duty to defend a CERCLA case until the point at which it was determined there was no duty to indemnify.
From 1944 to 1968, Metro-Atlantic operated a chemical plant at the …
Insurers Must Idemnify Where Inability to Allocate Between Covered and Uncovered Losses
By Tred R. Eyerly on
Revisiting the longstanding Stringfellow Acid Pits coverage litigation, the California Supreme Court relied on the doctrine of concurrent proximate cause as applied to the pollution exclusion to determine the insurer must indemnify for covered and uncovered claims. See State of California v. Allstate Ins. Co., S149988 (Cal. March 9, 2009)[here].
…
Outline on Transfer of Liabilty Policies When No-Assignment Clause
By Tred R. Eyerly on
The outline on transfer of liability policies to a successor created by Rina Carmel and me for our round table presentation last week at the ABA Section of Litigation, Insurance Coverage Litigation Committee in Tucson, is here. Materials from the plenary and breakout sessions are available at the ABA Section of Litigation website
Texas Court Determines Insured Cannot Rely On Extrinsic Evidence for Duty to Defend
By Tred R. Eyerly on
Under Dairy Road Partners v. Island Ins. Co., 92 Hawai`i 398, 414, 992 P.2d 93, 117 (2000), the Hawai`i Supreme Court determined an insured, but not the insurer, can rely on extrinsic evidence to clarify the underlying allegations and demonstrate the possibility of a claim being covered. The Texas Supreme Court recently departed from this reasoning and held neither the…