Duty to Indemnify

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   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…

      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…

   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…

    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…

    Coverage under a homeowners' policy was denied by State Farm when corrosion surrounding a nail driven through a pipe caused a leak and extensive water damage many years later.  See Freedman v. State Farm Ins. Co., B202617 (Cal. Ct. App. May 5, 2009)[here].  The policy provided "all-risk" coverage, but excluded loss from:…

    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…

    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].

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An oral argument on coverage issues is scheduled before the ICA on November 12, 2008.  The brief description of the case (generally drafted by an ICA law clerk) states:

Chezray Hayes, a minor, died when the aircraft he waspiloting crashed on Molokai.  His parents, Defendants-AppelleesMitchell and Natalie Hayes (the Hayes), filed a wrongful

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The Texas Supreme Court recently held a liability insurer may indemnify an award of punitive damages imposed because of an insured’s gross negligence.  Public policy, the court reasoned, favored freedom of contract.  The court, however, limited this decision to the workers’ compensation context.

Of note, the Texas court noted that Hawaii has statutorily adopted the…

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…