A commentary on insurance coverage issues in Hawaii and beyond
The Eighth Circuit rejected the policyholder's appeal on the ambiguity of a subsurface water exclusion. Bull v. Nationwide Mut. Fire Ins. Co., 2016 U.S. App. LEXIS 9703 (8th Cir. May 27, 2016).
Michael Bull, the insured, experienced a leak from a buried pipe beneath his garage slab. The leak caused…
The policy’s faulty workmanship exclusion barred coverage despite an ensuing loss provision. Gateway II LLC v. Hartford Fire Ins. Co., 2016 N. Y. Misc. LEXIS 1325 (Sup. Ct. N. Y. April 5 , 2016).
Water damage occurred at Gateway. The policy provided, “We will not pay for loss or damage caused by or resulting…
The insurer denied the insured restaurant's claim for food spoilage and loss of business income when a flood elsewhere caused a power outage. N. Spy Food Co., LLC v. Tower Nat'l. Ins., 2016 N.Y. Misc. LEXIS 1033 (N.Y. Sup. Ct. March 22, 2016).
Tower denied the claim based on an…
The insured's motion for summary judgment was granted, paving the way for recovery for property loss and business interruption. Nat'l Union Fire Ins. Co. of Pittsburgh, Pa. v. TransCanada Energy USA, Inc., 2016 N.Y. Misc. LEXIS 1027 (N.Y. Sup. Ct. March 2, 2016).
TransCanada purchased a power plant on August 26, 2008, for…
The Minnesota Supreme Court considered a certified question from the the U.S. District Court regarding consideration of depreciating labor costs in determining the actual cash value of a loss. Wilcox v. State Farm Fire & Cas. Co., 2016 Min. LEXIS 50 (Minn. Feb. 10, 2016).
The insureds' home was damaged by hail.
The Ninth Circuit held that the efficient proximate cause doctrine is not limited to all-risk policies. Olin Corp. v. Continental Cas. Co., 2016 U.S. App. LEXIS 4905 (9th Cir. March 17, 2016).
Olin operated a plant that produced industrial chemicals. Continental issued a policy covering the plant's boilers and machinery. In late…
The trial court's issuance of summary judgment to the insurer for mold and water damage was upheld on appeal. Schwartz v. Encompass Indem. Co., 2016 Mich. App. LEXIS 551 (Mich. Ct. App. March 15, 2016).
The contractor was demolishing a portion of the insured's home when he discovered water damage and…
The court reversed judgment in favor of the policyholder after finding that the trial court erred in giving its jury instruction on the efficient proximate cause doctrine. Citizens Prop. Ins. Corp. v. Salkey, 2016 Fl. App. LEXIS 2840 (Fla. Ct. App. Feb. 26, 2016).
The Salkeys had an all-risk homeowners policy from…
The court confirmed that there was no coverage for damage to the policyholder's building caused by a large volume of water. Praetorian Ins. Co. v. Arabia Shrine Ctr. Houston, 2016 U.S. Dist. LEXIS 20186 (S.D. Texas Feb. 19, 2016).
The damage occurred when water began seeping through the baseboards of the Shrine. Employees…
The Iowa Supreme Court found that a separate action against the insurer for bad faith, filed after judgment was entered against the insurer on breach of contract, was barred by claim preclusion. Villarreal v. United Fire & Cas. Co., 2016 Iowa LEXIS 1 (Jan. 8, 2016).
The insureds' restaurant was severely damaged by…
