After the lower court granted summary judgment to Omni Hotels and Resorts’ claim for coverage due to COVID-19 losses, the Texas Court of Appeals reversed, in part, based upon language in some of the insurers’ policies. TRT Holdngs, Inc. v. Ace Am. Ins. Co., 2025 Tex. App. LEXIS 7407 (Texas Ct. App. Sept. 18
Insurer’s Motion to Compel Insured’s Tax Returns Partly Successful
The insurer’s Motion to Compel the production of the insured’s income tax returns was partially successful after the court limited the number of years for which returns would be produced. Pittman Assets MSSC, L.L.C. v. Scottsdale Ins. Co., 2026 U.S. Dist. LEXIS 182049 (E.D. La. Sept. 17, 2026).
Pittman’s property was insured by Scottsdale
Insured’s Breach of Contract Claim Survives Motion to Dismiss, but Bad Faith Claim Does Not
The court denied the insurer’s motion to dismiss the insured’s breach of contract claim, but granted the motion to dismiss without prejudice the bad faith claim. Terrazas v. State Farm Fire & Cas. Co., 2025 U.S. Dist. LEXIS 173920 (D. Colo. Sept 5, 2025).
The plaintiff, Alejandro Garcia-Terrazas, had a policy issued by State
Allegations in Insured’s Complaint Sufficient to Survive Motion to Dismiss
The insured’s complaint sufficiently pled breach of contract and bad faith to survive the insurer’s motion to dismiss. Macias v. Am. Family Ins. Co., 2025 U.S. Dist. LEXIS 148628 (D. Colo. Aug. 1, 2025).
A hailstorm damaged the insureds’ property, including the roof. The insureds filed a claim (Claim One) with American Family. An adjuster
Insured’s Counsel Sanctioned for Filing Pleading with No Legal or Factual Justification
The insured’s attorney was sanctioned for pursuing claims that were factually and legally unfounded. Wright v ASI Lloyds, No. 3?22-cv-357, Order (S.D. Texas Aug. 5, 2025).
ASI moved for sections against the insured’s counsel, Eric B. Dick of the Eric Dick Law Firm, PLLC, requiring payment of fees, costs and
Anti-Concurrent Causation Clause Defeats Coverage
The insured’s claim for damage to the property’s electrical equipment and power loss after a wind and rain storm was not covered due to the policy’s anti-concurrent causation clause. Allah-Pak Properties, LLC v. Century Surety Co., No. 2:23-CV-00301, Order (S.D. Texas Aug. 8, 2025).
During a storm, water seeped into
Seventh Circuit Confirms that Appraisers May Determine Cause of Loss in Addition to Amount of Loss
The Seventh Circuit affirmed the district court's ruling that the appraisers appointed under the policy provisions to establish the amount of loss could also find the cause of the loss. Mesco Manufacturing, LLC v. Motorists Mut. Ins. Co., 2025 U.S. App. LEXIS 18598 (7th Cir. July 25, 2025).
Mesco Manufacturing
Insured’s Bad Faith Claims Survive Motion to Dismiss While Negligence Claim Fails
The federal district court applying Kentucky law denied the insurer's motion to dismiss bad faith claims, but granted the motion for dismissal of the insured's negligence claim. Smith v. Am. Strategic Ins., 2025 U.S. Dist. LEXIS 140900 (W.D. Ky. July 23, 2025).
The Smiths purchased a homeowners policy from American
Federal Court Certifies Class Challenging State Farm’s Depreciation of Sales Tax When Calculating ACV
The federal district court agreed that a challenge to State Farm's practice of depreciating sales tax when calculating actual cash value (ACV) benefits payments to policyholders could go forward as a class action. Pitkin, et al. v. State Farm Fire and Cas. Co., 2025 U.S. Dist. LEXIS 134948 (July 15, 2025, N.
Broker’s Motion to Dismiss Denied
The curt denied the broker's motion to dismiss the insured's claim that the broker negligently failed to provide the requested coverage. The Paper Tigers, Inc. v. Arch Ins. Group, Inc., et al, 2025 US. Dist. LEXIS 128114 (N.D. Ill. July 7, 2025).
The Paper Tigers, Inc. (Plaintiff) specialized in reworking paper to meet