On the heals of a decision from a federal district court that smoke damaged was a direct physical loss, the California Court of Appeal affirmed the trial court's grant of summary judgment to the insurer regarding the insureds' claim for loss due to smoke damage. Gharibian v. Wawanesa General Ins. Co., 2025
First Party Insurance
Smoke and Soot Constitute Direct Physical Loss
By Tred R. Eyerly on
The federal district court found that smoke and soot contamination rendered the property unfit for normal use, meeting the standard for "direct physical loss" under the policy language for recovery of business income. Bottega, LLC, et al. v. National Surety Corporation-Chicago, Il, 2025 U.S. Dist. LEXIS 5666 (N.D. Cal. Jan. 10, 2025).
Bottega…
Collapse Claim Denied After Insured’s Failure to Meet Suit Limitation Deadline
By Tred R. Eyerly on
The insured's claim for collapse of a building was denied after failing to file suit within the two-year limitation set forth in the policy. 94 Broad Street, LLC v. The Hartford Financial Services Group, Inc., 2025 Conn. Super. LEXIS 112 (Conn. Super. Ct. Jan. 24, 2025).
The insured had a…
Court Denies Insurer’s Motion for Summary Judgment on Breach of Contract Claim and Further Denies Motion to Exclude Insured’s Expert
By Tred R. Eyerly on
The court denied the insurer's Motion for Summary Judgment seeking to dismiss the insured's breach of contract claim. The court also denied the insurer's Daubert motion to exclude the insured's expert witness. Ram Krishana Inc. v. Mt. Hawley Ins Co., 2025 U.S. Dist. LEXIS 18912 (S.D N.Y Feb. 3, 2025).
…
Insurer’s Motion to Compel Inspection Denied
By Tred R. Eyerly on
The court denied the insurer's motion to compel an inspection of the insured's residential rental property and the insurer's request for attorney fees. Bradley v. Evanston Ins. Co., 2025 U.S. Dist. LEXIS 14522 (E.D. La. Jan. 27, 2025).
Plaintiff suffered damage to her property due to Hurricane Ida. Evanston insured…
Hawaii Supreme Court Paves the Way for Maui Fire Settlement to Proceed
By Tred R. Eyerly on
The settlement reached in the Maui fire cases appears to be a step closer to becoming a reality after the Hawaii Supreme Court issued its Order answering three reserved questions posed by the circuit court. In the Matter of the Petition for the Coordination of Maui Fire Cases, SCRQ-24-0000602 (Order Feb. 10, 2025). The Order…
Insurer Granted Summary Judgment After Insured Fails to Establish Claim is Covered
By Tred R. Eyerly on
The federal district court granted the insurer's motion for summary judgment because the insureds failed to meet their burden of establishing the claim was covered by the policy. Cutchall v. Chubb Lloyd's Ins. Co. of Tex., 2024 U.S. Dist. LEXIS 234546 (S. D. Texas Dec. 31, 2024).
In September 2021…
Insured’s Count for Bad Faith Stripped from Claim
By Tred R. Eyerly on
The insurer's motion for partial summary judgment challenging the insured's bad faith claim was successful. Baker v. Allstate Index. Co., 2024 U,.S. Dist. LEXIS 227802 (N.D. Miss. Dec. 17, 2024).
Teresa Baker alleged that the roof of her rental property sustained wind and rain damage during a storm. She further contended…
Bucking the Trend, North Carolina Supreme Court Finds Insureds State Claim for COVID-19 Losses
By Tred R. Eyerly on
Departing from the multitude of decisions that have determined there is no coverage for losses due to the COVID-19 pandemic, the North Carolina Supreme Court found that various bars and restaurants that were closed during the pandemic under government orders stated a claim for coverage when suing their insurers. North State Deli, LLC, …
COVID-19 Claim Survives Insurers’ Motion to Dismiss
By Tred R. Eyerly on
The insurers' motion to dismiss a COVID-19 claim was denied based upon an endorsement for business interruption claims. Mandarin Oriental, Inc. v. HDI Global Ins. Co., 2024 U.S. Dist. LEXIS 169836 (S.D N.Y. Sept. 19, 2024).
Mandarin owned hotels in, among other cities, Miami, New York, Washington, D.C. and Boston.