While the court denied summary judgment on whether the alleged damage was due to faulty workmanship and not covered, it granted summary judgment for dismissal of several business risk exclusions the insurer asserted against the developer. United Specialty Ins. Co. v. Dorn Homes, 2020 U.S. Dist. LEXIS 138431 (D. Ariz. Aug. 4
Duty to Indemnify
Federal Court Dismisses Coverage Action in Favor of Pending State Proceeding
By Tred R. Eyerly on
The federal district court declined to exercise jurisdiction over the coverage action that was parallel to a case pending in state court involving the same parties and same issues pending. Navigators Ins, Co. v. Chriso's Tree Trimming, 2020 U.S. Dist. LEXIS 129711 (E.D. Calif. July 22, 2020).
Pacific Gas &…
Court Stays Coverage Action Filed under Declaratory Judgment Act
By Tred R. Eyerly on
The federal district court, district of Hawaii, stayed the coverage action to allow the underlying state court action to proceed, United States Fire Ins. Co. v. Prieto, 2020 U.S. Dist. LEXIS 106676 (D. Haw. June 18, 2020).
In the underlying action, Aerica Cates sued defendant Prieto and the State of…
Broker Not Agent of Insurer
By Tred R. Eyerly on
The court granted the insurer's motion for summary judgment, finding that the insured's broker was not an agent of the carrier. Maxum Indem. Co. v. Broken Spoke Bar & Grill, 2020 U.S. District. LEXIS 49736 (W.D. Ky. March 23, 2020).
The insured argued that "insurance Agent Clark" assured him that…
Watercraft Exclusion Bars Coverage for Serious Bodily Injury
By Tred R. Eyerly on
Coverage for a serious bodily injury was barred under the policy's watercraft exclusion. United States Fire Ins. Co. v. Hawaiian Canoe Racing Ass'n, 2019 U.S. Dist. LEXIS 207564 (D. Haw. Nov. 27, 2019). A related case involving the accident and addressing coverage issues under a policy issued by Great Divide Insurance Company…
Accident Outside of Insured Location Not Covered
By Tred R. Eyerly on
The federal district court found there was no coverage for injury caused by an explosion at a recycling facility. Mountain West Farm Bur. Mut. Ins. Co. v. Jackson, et al., 2019 U.S. Dist. LEXIS 202319 (E.D. Wash. Nov. 21, 2019).
Tim and Roberta Jackson owned Ibex Construction, located in Spokane…
Insurer Must Honor Written Representation Made By its Agent in Certificate of Insurance
By Tred R. Eyerly on
Answering a certified question from the Ninth Circuit, the Washington Supreme Court responded that an insurer's agent who makes a representation in a certificate of insurance binds the insurer. T-Mobile USA Inc. v. Selective Ins. Co. of Am., 2019 Wash. LEXIS 659 (Wash. Sup. Ct. Oct. 10, 2019).
Two T-Mobile…
Third Circuit Remands Denial of Coverage Based on Expected and Intended Definition of Occurrence
By Tred R. Eyerly on
While affirming the district court's denial of coverage under policies that defined occurrence as an accident, the Third Circuit remanded for further consideration of the policies containing an expected and intended definition of occurrence. Sapa Extrusions, Inc. v. Liberty Mut. Ins. Co., 2019 U.S. App. LEXIS 27668 (Sept. 13, 2019).
…
Insurer Must Defend Additional Insured Though Its Insured is a Non-Party
By Tred R. Eyerly on
The plaintiff insurer's motion for partial summary judgment seeking an order that defendant insurer was obligated to defend a non-party as an additional insured was granted. Am Empire Surplus Lines Ins. Co. v. Burlington Ins. Co., 2019 N. Y. Misc. LEXIS 4145 (N. Y. Sup. Ct. July 25, 2019).
Quality…
Economic Loss Not Property Damage
By Tred R. Eyerly on
The Fifth Circuit agreed with the district court that the insured subcontractor's economic losses did not amount to covered property damage. Greenwich Ins. Co. v. Capsco Industries, Inc., 2019 U.S. App. LEXIS 23949 (5th Cir. Aug 12, 2019).
Capsco Industries, Inc. was a subcontractor on the construction of a casino.