In Landry Architecture, LLC v. Valley Forge Ins. Co., No. 09-3974, 2009 U.S. Dist. LEXIS 99109 (E.D. La. Oct. 23, 2009), the insured's claims for business income losses resulting from Hurricane Katrina and breach of the implied covenant of good faith and fair dealing did not survive the insurer's motion to dismiss on statute
First Party Insurance
Settlement for Hurricane Destruction Not Upset by Insurer’s Additional Payment
By Tred R. Eyerly on
Can an insured who settles with the insurer pursuant to a mediation program later reject the settlement and seek additional coverage? The Fifth Circuit denied such relief to the insured in Wiley v. State Farm Fire and Cas. Co., No. 09-60191 (5th Cir. Oct. 9, 2009).
The insured's home was reduced to…
Dismissal of Excess Carriers Reversed
By Tred R. Eyerly on
The insured Condominium Association had primary and excess coverage. See El-Ad Residences at Miramar Condo. Assoc. v. Mt. Hawley Ins. Co., 2009 U.S. Dist. LEXIS 92216 (S.D. Fla. Sept. 24, 2009). Significant property damage was caused by Hurricane Wilma. The insured alleged that three years after the hurricane, the insurers failed to adjust…
Helicopter Crash Not Covered as “Common-Carrier Accident”
By Tred R. Eyerly on
When plaintiff's husband was killed in a helicopter accident while being transported to work in the Gulf of Mexico, the insurer paid $40,000 under the "Other Accident" provision of the accident insurance policy instead of $150,000 under the "Common-Carrier Accidents" provision. See Smith v. American Family Life Assurance Co. of Columbus, No. 08-31032…
Corban Presents Well-Reasoned Analysis of Anti-Concurrent Causation Clause
By Tred R. Eyerly on
Having now read the full Corban decision, I am impressed with the clarity of the analysis set forth in the opinion. See Corban v. United Services Automobile Assoc., 2009 Miss LEXIS 481 (Miss. Sup. Ct. Oct. 8, 2009). The Mississippi Supreme Court carefully considered the facts, offered a common sense analysis to the…
Mississippi Supreme Court Rules Anti-Concurrent Causation Clause Inapplicable
By Tred R. Eyerly on
The Biloxi Sun Herald reports here that the Mississippi Supreme Court reversed today the trial court in Corban v. United Serv. Auto., No. 2008-IA-00645-SCT (Miss. Sup. Ct. Oct. 8, 2009). We previously reviewed the Corbin case here, here and here. The unanimous decision of the Mississippi Supreme Court is here.
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Policy Covers Damaged Inventory Protected By Tarp In Outside Location
By Tred R. Eyerly on
A typical "open peril" policy excludes payment for loss of personal property left "in the open." In Twenhafel v. State Auto Prop. and Cas. Ins. Co., No. 08-4275, 2009 U.S. App. LEXIS 20373 (7th Cir. Sept. 14, 2009), the court determined that storm-caused damage to insured's raw wood inventory stored outside under a tarp was not excluded by…
Business Interruption Coverage Properly Denied
By Tred R. Eyerly on
The insured's claim for Business Interruption coverage failed to survive a motion to dismiss in Kushner Lagraize, LLC v. Phoenix Ins. Co., 2009 U.S. Dist. LEXIS 81576 (E. D. La. Sept. 9, 2009).
The policy provided "property, liability, business income and extra expenses coverages" at the insured's business location. The policy further stated coverage…
Galveston One Year After Hurricane Ike
By Tred R. Eyerly on
You first notice the trees. Approaching Galveston on its main thoroughfare, Broadway Avenue, the trees still stand bare, stripped of all foliage after being seared all night one year ago by Ike's hurricane force winds.
Another thing my wife and I observed driving through Galveston this past Labor Day was the number of houses, seemingly on every…
Flood Damage Not Covered Where Insured Fails to File Proof of Loss
By Tred R. Eyerly on
In Schubert v. Chertoff, No. 07-5075, 2009 U.S. Dist. LEXIS 75835 (E.D. La. Aug. 26, 2009), the court considered whether the insured's failure to file a proof of loss for flood damage should be excused because two previous, untimely proofs of loss were accepted.
The insured had a Standard Flood Insurance Policy…