Responding to a certified question from the First Circuit, the Supreme Judicial Court of Massachusetts determined that rainwater collecting on the insureds' rooftop and causing interior damage was not "flood" as defined in the policy and subject to sublimits. Zurich Am. Ins. Co. v. Medical Properties Trust, Inc., 2024 Mass. LEXIS ___
First Party Insurance
Additional Insured is Loss Payee after Hurricane Damage
By Tred R. Eyerly on
Construing the policy language, the federal district court found that the policy's additional insured was the loss payee for damage caused by Hurricanes Laura and Delta. TCP Ryan St. LLC v. Weschester Surplus Lines Ins. Co., 2024 U.S. Dist. LEXIS 125529 (W.D. La. July 16, 2024).
Hurricanes Laura and Delta…
Homeowner Survives Motion to Dismiss Depreciation Claims
By Tred R. Eyerly on
The insurer's motion to dismiss claims for improper claims handling when considering implementation of depreciation was denied. Morrison v. Indian Harbor Ins. Co, et al., 2024 U.S. Dist. LEXIS 115664 (S. D. W. Va. July 1, 2024).
Plaintiff's home suffered flood damage. The house was insured by Indian Harbor a…
Ensuing Loss Provision Salvages Coverage for Water Damage Claim
By Tred R. Eyerly on
The Court of Appeals for the D.C. Circuit reversed the district court's finding of no coverage and found that the ensuing loss provision provided coverage for water damage. 3524 East Cap Venture, LLC, et al. v. Weschester Fire Ins. Co., et al., 104 F. 4th 193 (D.C. Cir. 2024).
Plaintiff…
Insured’s Claim for Water Damage Dismissed with Leave to Amend
By Tred R. Eyerly on
The court granted the insurer's motion to dismiss the insured's claim for water damage under a homeowners' policy, but granted leave to amend. Thompson v. State Farm Gen. Ins. Co., 2024 U.S. Dist. LEXIS 98486 (C.D. Cal. June 3, 2024).
The insureds' first amended complaint alleged they "suffered a sudden…
COVID-19 Case Survives Insurers’ Motion for Partial Summary Judgment Based Upon Endorsement for Infectious Disease
By Tred R. Eyerly on
The Nevada trial court distinguished a prior decision from the Nevada Supreme Court and denied the insurers' Motion for Partial Summary Judgment on a COVID-19 claim. Bloomin' Brands, Inc. v. Ace Am. Ins. Co., et al., No. A-21-830204-B (Nev. Dist. Ct., June 21, 2024) (order denying motion for partial summary judgment). The…
Ninth Circuit Finds Thread That May Save COVID-19 Claim
By Tred R. Eyerly on
The Ninth Circuit affirmed in part, denied in part, the district court's granting of the insurer's motion to dismiss the insureds' COVID-19 claim. Worthy Hotels, Inc., et al. v. Fireman's Fund Ins. Co., 2024 U.S. App. LEXIS 11747 (9th Cir. May 15, 2024).
A group of hotels and restaurants sought…
No Bad Faith in Insurer’s Denial of Collapse Claim
By Tred R. Eyerly on
The Tenth Circuit affirmed the district court's grant of summary judgment to the insurer on the insured's claims for collapse and bad faith. Christopher M. Wolpert Saddletree Holding, LLC v. Evanston Ins. Co., 2024 U.S. App. LEXIS 10377 (10th Cir. April 30, 2024).
On May 7, 2019, Saddletree filed a…
No Coverage for Homeowner Named as Borrower in Policy but Not as Insured
By Tred R. Eyerly on
The magistrate judge recommended that the homeowner's complaint seeking coverage for damage caused by Hurricanes Laura and Delta be denied because the homeowner was only named as the borrower under the policy. LeDay v. Integon Nat'l Ins. Co., 2024 U,S. Dist. LEXIS 87369 (W.D. La. April 15, 2024).
When the…
Answering Certified Question, California Supreme Court Finds No Coverage for COVID-19 Claims
By Tred R. Eyerly on
Finally weighing in on whether the presence of COVID-19 constitutes direct physical loss or damage to property, the California Supreme Court answered a certified question from the Ninth Circuit by determining there was no coverage under California law. Another Planet Entertainment, LLC v. Vigilant Ins. Co., 2024 Cal. LEXIS 2738 (Cal.