The California Court of Appeal recently issued an important case involving coverage for continuous property damage over several policy periods. Among its various rulings, the court held policy limits of multiple policies could be stacked. Further, the "all sums" rule, obligating each insurer to pay the entire claim, was applicable. See State of California v.
Comprehensive General Liability
No Duty to Defend or Indemnify Where Initial Manifestation of Injury Predates Policy
By Tred R. Eyerly on
Our last post summarized a Texas case (Byrne, Ltd. v. Trinity Universal Ins. Co., 2008 Tex. App. LEXIS 9041 (Tex. Ct. App. Dec. 4, 2008)), which held the insurer must defend where the underlying complaint is silent as to when the injury occurred. Today we shift gears and review a case favorable to insurers…
Insurer Must Defend Where Underlying Complaint is Silent as to When Injury Occurred
By Tred R. Eyerly on
The seminal Hawai`i case on injury in fact and trigger of coverage is Sentinel Ins. Co., Ltd. v. First Ins. Co. of Hawaii, Ltd. 76 Hawai`i 277, 875 P.2d 894 (1994), where the Hawai`i Supreme Court adopted the injury in fact trigger. Since Sentinel, however, the Hawai`i Supreme Court has not returned to the issue.…
Indiana Court Agrees with Hawaii In Finding No Assignment of Policy
By Tred R. Eyerly on
The Indiana Supreme Court recently aligned itself with the Hawaii Supreme Court in deciding an insurance policy could not be assigned without the insurer's consent. Travelers Cas. and Sur. Co. v. United States Filter Corp., 2008 Ind. LEXIS 953 (Ind. Sup. Ct. Oct. 15, 2008). The holding in Travelers is consistent with the…
Sinkhole Collapse Not Excluded as Earth Movement
By Tred R. Eyerly on
In Federated Rural Elec. Ins. Corp. v. TIG Ins. Co., 2008 U.S. App. LEXIS 20268 (9th Cir. Sept. 19, 2008), the issue was whether an excess, following form policy excluded coverage for "sinkhole collapse" under its earth movement exclusion.
TIG’s excess policy excluded "earth movement," but did not define "earth…
Texas Supreme Court Follows Hawai`i Case Law in Adopting Injury-In-Fact Trigger
By Tred R. Eyerly on
In answering a certified question from the Fifth Circuit, the Texas Supreme Court adopted the injury-in-fact trigger for a comprehensive liability policy in Don’s Building Supply Inc. v. OneBeacon Ins. Co., No. 07-0639 (Tex. Aug. 29, 2008).
The insured sold and distributed insulation which was installed in various homes from…
Hawaii Federal Court Dismisses Action on Duty to Indemnify When Underlying Cases Still Being Litigated
By Tred R. Eyerly on
In a recent case, the U.S. District Court for the District of Hawaii determined the insurer’s duty to indemnify was unripe for decision because the underlying litigation was still ongoing in state court. See Western World Ins. Co. v. The County of Hawaii, 2008 U.S. Dist. LEXIS 40118 (D. Haw. May 15…
New York Concurs with Hawaii on Coverage For Additional Insureds
By Tred R. Eyerly on
Coverage for an additional insured is typically limited to instances where the insured’s negligence causes injury. For example, in First Ins. Co. of Hawaii, Inc. v. State of Hawaii, 66 Haw. 413, 665 P.2d 648 (1983), the state was named as an additional insured in a policy issued to a contractor building…
Ninth Circuit Ratifies Burlington’s Mistake
By Tred R. Eyerly on
Burlington Insurance Company wins again. The Ninth Circuit of Appeals issued an unpublished decision a few months ago entitled Burlington Insurance v. Steve’s Ag Services, which appears to perpetuate some of the logic flaws in the original Burlington decision. Although the court refused to explain the underlying facts (instead simply stating "the parties are…
Relying on Hawaii Insurance Law, New York Court Rules Consequential Damages Properly Awarded Against Insurer
By Tred R. Eyerly on
The New York Court of Appeals recently ruled that commercial property owners can seek “consequential damages” against their insurers who breach the policy. In reaching its decision, the Court relied, in part, on a decision by the Hawaii Court of Appeals, The Best Place, Inc. v. Penn Am. Ins. Co., 82 Haw. 120, …