A commentary on insurance coverage issues in Hawaii and beyond
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…
The Mississippi Supreme Court affirmed the granting of summary judgment to the insurer that there was no coverage under the all risk policy for loss caused by wind and water. Porter v. Grand Casino of Miss., Inc., 2016 Miss. LEXIS 3 (Miss. Jan. 7, 2016).
Cherri Porter's home was destroyed during Hurricane Katrina.
Relying upon the policy's anti-concurrent causation clause, the Illinois Court of Appeals affirmed the trial court's ruling that there was no coverage for a pool that popped out of the ground. Bozek v. Erie Ins. Group, 2015 Ill. App. LEXIS 940 (Ill. Ct. App. Dec. 17, 2015).
Following a rainstorm, the insureds…
The court applied the efficient proximate cause doctrine to find coverage under a property policy for a building's collapse. Vardanyan v. Amco Ins. Co., 2015 Cal. App. LEXIS 1181 (Cal. Ct. App. Dec. 11, 2015).
The insured submitted a claim to Amco for damage to the flooring of the house and for mold. Amco's adjustor…
The insurer's depreciation of labor in the calculation of actual cash value was found to be against Arkansas public policy. Shelter Mut. Ins. Co. v. Goodner, 2015 Ark. LEXIS 460 (Ark. Dec. 10, 2015).
Shelter Mutual's policy provided that it would pay the insured "the actual cash value of all the damaged…
The court granted portions of the business interruption claim, while denying other portions. Phoenix Ins. Co. v. Infogroup, Inc., 2015 U.S. Dist. LEXIS 162810 (S. D. Iowa Nov. 30, 2015).
Phoenix insured Infogroup's business buildings and personal business property, including data and data processing equipment. In late May 2011, warnings were issued of…
