Having previously decided that construction defect claims did not arise from an occurrence and were consequently not covered under Hawaii law, the Hawaii Federal District Court refused to dismiss the insured's second amended counterclaim alleging various claims for relief. Ill. Nat'l Ins. Co. v. Nordic PCL Construc., Inc., 2013 U.S. Dist. LEXIS 108932
Misrepresentation
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…
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 Duty to Defend Negligent Misrepresentation Claim
By Tred R. Eyerly on
The Texas Court of Appeals decided there was no duty to defend claims of both negligence and negligent misrepresentation in Branham v. State Farm Lloyds, 2012 Tex. Ct. App. LEXIS 7736 (Tex. Ct. App. Sept. 12, 2012).
The insured sold her home to the McCulloughs. After moving into their new home, the McCulloughs sued the insured…
No Coverage For Negligent Misrepresentation Without Allegations of “Bodily Injury” or “Property Damage”
By Tred R. Eyerly on
Jeff City Industries was the general contractor for a sewer system improvement project in Branson, Missouri. Bituminous Cas. Corp. v. United HRB Gen. Contractors, Inc., 2011 U.S. Dist. LEXIS 145666 (W.D. Mo. Dec. 19, 2011). Branson sued Jeff City, alleging breach of the construction contract for the project. The claims included improperly bedded…
Illinois Court Determines Insurer Must Defend Negligent Misrepresentation Claim
By Tred R. Eyerly on
Although the insureds disclosed flooding problems in the basement, the buyers purchased their home. USAA Cas. Ins. Co. v. McInerney, 2011 Ill. App. LEXIS 1130 (Ill Ct. App. Oct. 31, 2011). In a supplemental disclosure, the insureds reported that during heavy rains light seepage occurred in the basement.
After moving in, the…
Hawaii Supreme Court Affirms Denial Cancellation of Policy Based on Misrepresentation
By Tred R. Eyerly on
In October, we reported here that the Intermediate Court of Appeals affirmed the cancellation of a policy based on the insured's misrepresentation of the type of vehicle being insured. The Hawaii Supreme Court recently affirmed the ICA's decision. See Farmer v. Pacific Speciality Ins. Co., 2011 Haw. LEXIS 28 (Haw. Feb. 7, 2011).
Farmer…
Volitional Acts Negate Allegations of Negligent Misrepresentation
By Tred R. Eyerly on
The Archdiocese sought coverage under its CGL policy for allegations of sexual abuse committed by its former priests. Because the underlying complaints alleged volitional acts rather than accidental occurrences, the court determined there was no coverage. See Doe v. Archdiocese of Milwaukee, 2010 WISC. App. LEXIS 954 (Wis. Ct. App. Nov. 23, 2010).…
Misrepresentation Justifies Insurer’s Cancellation of Policy
By Tred R. Eyerly on
The insurer's cancellation of a policy based upon a misrepresentation of the vehicle being covered was deemed justified by the Hawaii Intermediate Court of Appeal in Farmer v. Pacific Specialty Ins. Co., 2010 Haw. App. LEXIS 525 (Haw. Ct. App., Sept. 30, 2010).
The insured purchased a policy for a used motorcycle…
Insurer’s Motion to Void Policy for Misrepresentation Fails
By Tred R. Eyerly on
If the insured misrepresents that it owns the insured property, can the insurer void the policy? In Grenoble House Hotel v. Hanover Ins. Co., 2010 U.S. Dist. LEXIS 75355 (E.D. La. July 26, 2010), the court denied the insurer's motion for summary judgment seeking to void the policy on misrepresentation grounds.
Hanover…