Plaintiff sued her adjuster in state court after Hurricane Sandy caused flood damage to her home. Plaintiff alleged her insurance company paid her too much money based upon the adjusters' fradulent conduct. After defendants removed the case to federal court, the court granted plaintiff's motion to remand to state court. Brooks v. Foglio
First Party Insurance
Homeowner’s Policy Does Not Cover Loss of Investment or Emotional Distress
By Tred R. Eyerly on
The Maine Supreme Court found a homeowner's policy did not cover damages for loss of investment, undisclosed physical problems with the property, and emotional distress. Langevin v. Allstate Ins. Co., 2013 LEXIS Me 54 (Me. June 4, 2013).
The underlying plaintiffs sued the insured after purchasing his home for $315,000. The insured…
Efficient Proximate Cause Doctrine Bars Coverage for Collapse of Building
By Tred R. Eyerly on
The court rejected the insured's argument that there was coverage for the collapse of a building caused by water leakage (a covered peril) and landslide (an uncovered peril). Stor/Gard, Inc. v. Strathmore Ins. Co., 2013 U.S. LEXIS App. 11015 (1st Cir. May 31, 2013).
A severe rain storm caused soil to slide…
Failure to Comply with Sprinkler Endorsement Bars Coverage For Fire Damage
By Tred R. Eyerly on
Despite its application stating otherwise, the insured's failure to install a sprinkler system in its building barred coverage for extensive damage caused by fire. American Way Cellular, Inc. v. Travelers Prop. Cas. Co. of Am., 2013 Cal. App. LEXIS 425 (Cal. Ct. App. May 30, 2013).
American Way contacted a broker, A&J…
Hawaii Intermediate Court of Appeal Rejects Pro Se Insured’s Appeal
By Tred R. Eyerly on
The Hawaii Intermediate Court of Appeal agreed that the insured had entered an enforceable settlement with his insurer regarding a coverage dispute. Flowers v. United Services Automobile Assoc., No. 30085, Summary Disposition Order (Haw. Ct. App. May 17, 2013). [Order here].
The insured made a claim under his renter's insurance…
Insurer and Agent Liable for Failure to Obtain Flood Insurance
By Tred R. Eyerly on
The Louisiana Court of Appeal affirmed the trial court's finding of liability on the part of the insurer and the agent for their failure to properly procure flood insurance for the insureds. Barnett v. Fid. Nat'l Prop. & Cas. Co., 2013 La. App. LEXIS 856 (La. Ct. App. May 1, 2013).
The…
No Coverage Under Efficient Proximate Cause Doctrine for Damage Caused by Leaking Pipe
By Tred R. Eyerly on
In an unpublished opinion, the California Court of Appeal determined there was no coverage for damage caused by a leaking pipe, including mold. Brown v. Mid-Century Ins. Co., 2013 Cal App. Unpub. LEXIS 2389 (Cal. Ct. App. April 2, 2013).
In February 2009, the insureds noticed condensation on the windows of their…
Hawaii Federal Court Addresses Ensuing Loss, Anti-Concurrent Causation Clause
By Tred R. Eyerly on
Judge Kay of the Hawaii federal district court found coverage under an all-risk policy for damage caused by arsenic. Ass'n of Apt. Owners of Imperial Plaza v. Fireman's Fund Ins. Co., 2013 U.S. Dist. LEXIS 50904 (D. Haw. April 9, 2013).
Plaintiff had a fourth floor constructed on top of its existing…
Federal Court Rejects Insurer’s Argument that Wisconsin Has Adopted the Manifestation Trigger for Property Policy
By Tred R. Eyerly on
The federal district court disagreed with the insurer's strident claim that Wisconsin followed the manifestation trigger for deciding coverage under a homeowner's policy. Strauss v. Chubb Indem. Ins. Co., 2013 U.S. Dist. LEXIS 224 (E.D. Wis. Jan. 2, 2013).
Several years after their house was constructed, the insureds discovered water damage. Chubb denied…
Factual Issues Prevent Insurer’s Motion to Deny Coverage for Failure to Cooperate
By Tred R. Eyerly on
The Washington Supreme Court reversed a summary judgment ruling for the insurer based upon the insured's failure to cooperate due to genuine factual issues. Staples v. Allstate Ins. Co., 2013 Wash. LEXIS 69 (Wash. Jan. 24, 2013).
The insured's van was stolen. Inside the van was a large collection of work tools.