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
Duty to Defend
Insurer’s Computer-Generated Summaries Admissible as Business Record
By Tred R. Eyerly on
The Ninth Circuit held an insurer's computer-generated summaries of payments were admissible as a business record in U-Haul International v. Lumbermens Mutual Cas. Co., No. 07-16187, 2009 U.S. App. LEXIS 17889 (9th Cir. Aug. 12, 2009).
U-Haul had a primary policy with Republic Western up to a total limit of $7,000,000 per occurrence in…
No Duty to Defend Registered Security Dealer Against Uncovered Claims
By Tred R. Eyerly on
Plaintiff was a registered representative with Legacy Financial Services. See Ganim v. Columbia Casualty Co., No. 08-3945, 2009 U.S. App. LEXIS 16174 (6th Cir. July 23, 2009)[here]. Columbia insured Legacy and agreed to defend Legacy's registered representatives for negligence in "rendering or failure to render Professional Services." Coverage was limited to "investment advisory…
Insurer Must Defend and Indemnify Trust Fund Established by Bankruptcy Court
By Tred R. Eyerly on
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
By Tred R. Eyerly on
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…
No Coverage for Damage to Cotton in Insured’s Care, Custody and Control
By Tred R. Eyerly on
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…
Merger Activities Not Covered Under Real Estate Professional Services
By Tred R. Eyerly on
The scope of coverage for "real estate professional services" was at stake in St. Paul Fire and Marine Ins. Co. v. ERA Oxford Realty Co. Greystone, LLC., No. 07-00921-CV (11th Cir. June 23, 2009) [here].
The underlying suit alleged ERA employees approached two real estate brokers to discuss a merger. A verbal agreement was reached…
Insured Not Entitled to Independent Counsel Based on Speculative Conflict
By Tred R. Eyerly on
The insured's right to independent counsel after the insurer agreed to defend under a reservation of rights was the issue presented in National Casualty Co. v. Forge Indus. Staffing Inc., No. 08-3110 (7th Cir. June 3, 2009) [here].
Forge was a staffing agency that placed temporary employees at companies throughout the United States. …
Insured Gives Timely Notice under Claims-Made Policy
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When the insured, Matkin, an architectural firm, was sued by GEWAC, Inc., shopping center owner, for improper drainage in a parking lot designed by Matkin, Everest, the insurer, refused to defend, contending Matkin had not given timely notice under the claims-made policy. Matkin-Hoover Engineering, Inc. v. Everest National Ins. Co., No. 08-CV-0451, 2009 U.S. Dist. LEXIS 44057 (W.D.
Construction Defects “Expected and Intended” Despite Insured’s Claim of Ignorance
By Tred R. Eyerly on
Whether the insured had sufficient knowledge of a construction defect to justify the insurer's denial of coverage was the issue in Far Northwest Dev. Co., LLC v. Cmty. Ass'n of Underwriters of Am., Inc., Case. No. C-05-2134, 2009 U.S. Dist. LEXIS 34521 (W.D. Wa. April 22, 2009).
In the underlying case, the Homeowner's Association claimed Mr.