Answering a question posed by the Ninth Circuit, the California Supreme Court found that a suit against a employer for negligent hiring, retention and supervision of a employee who intentionally injures a third party alleges an occurrence under a CGL policy. Liberty Surplus Co. Corp. v. Ledesma & Meyer Construction Co., 2018 Cal.
Occurrence
Insurer Must Defend Claims of Negligence and Private Nuisance
By Tred R. Eyerly on
The court determined there was a duty to defend negligence and private nuisance claims for dumping materials on the plaintiffs' property. Peters Heavy Construction, Inc. v. X-Pert One Tracking Corp., 2018 Wisc. App. LEXIS 358 (Wis. Ct. App. March 29, 2018).
Peters Heavy Construction sued X-Pert One for negligently depositing…
Under “Nature of The Event” Test, Intentional Shooting Not Covered
By Tred R. Eyerly on
The Supreme Court of Idaho found that the intentional shooting by a care-taker in the insureds' campground was not covered under the CGL policy. Farm Bureau Mut. Ins. Co. of Idaho v. Cook, 2018 Idaho LEXIS 71 (Idaho March 30, 2018).
The insureds allowed people to use a lake and…
Absence of Property Damage Leads to Rejection of Insured’s Claim
By Tred R. Eyerly on
Affirming the district court, the Eighth Circuit found that deteriorated bags which unintentionally mixed with landscaping materials did not amount to property damage under the CGL policy. Decker Plastics Corp. v. West Bend Mut. Ins. Co., 2018 U.S. App. LEXIS 2085 (8th Cir. Jan. 29, 2018). The district court's decision was the…
Duty to Defend Owed From Date of Window Installation Even Absent Allegations As To When Property Damage Occurred
By Tred R. Eyerly on
In a long-standing dispute between a window manufacturer and its insurer, the federal district court found that the insurer was obligated to pay defense costs from the date of installation of the alleged faulty windows even though the underlying complaints did not allege when the damage occurred. Pella Corp. v. Liberty Mut. Ins. …
Negligent Misrepresentation Not Covered by Homeowner’s Policy
By Tred R. Eyerly on
The seller's alleged negligent misrepresentation about the condition of the house was not covered by the homeowner's and umbrella policies. Allstate Ins. Co. v. Swaminathan, 2017 U.S. Dist. LEXIS 211931 (D. Conn. Dec. 27, 2017).
The insureds owned a home insured by Allstate under both a homeowner's and umbrella policy.
Lost Cattle and Milk Production Constitute Valid Claim Under Policy
By Tred R. Eyerly on
The insureds' claim for loss of cattle and lost milk production was covered under the policy. Chatelain v. Country Mut. Ins. Co., 2017 U.S. Dist. LEXIS 206621 (D. Or. Dec. 15, 2017).
The insureds leased their dairy farm to the Brauns. At the time of the lease, the dairy farm…
Gunshot Wound Covered When Not Expected or Intended
By Tred R. Eyerly on
The court reversed the trial court, finding there was an occurrence when injury occurred from a gun wound resulting from a fight. Erie Ins. Exh. v. Moore, 2017 Pa. Super. LEXIS 957 (Pa. Super. Ct. Nov. 22, 2017).
Harold McCutcheon went to the home of his former wife, Terry McCutcheon…
Negligent Misrepresentation Claim Does Not Allege Property Damage, Barring Coverage
By Tred R. Eyerly on
The Tennessee Court of Appeals reversed the trial court's determination that the seller's alleged negligent misrepresentation regarding the propensity of the property to flood was covered. Erie Ins. Exh. v. Maxwell, 2017 Tenn. App. LEXIS 746 (Tenn. Ct. App. Nov. 15, 2017).
The Chapmans purchased a residence from the Maxwells…
New Jersey Court Adopts Continuous Trigger for Construction Defect Claims
By Tred R. Eyerly on
The New Jersey Superior Court, Appellate Division, adopted the continuous trigger for establishing which insurers were on the risk for construction defect claims. Air Master & Cooling, Inc. v. Selective Ins. Co. of Am., 2017 N.J. Super. LEXIS 144 (N.J. Super. Ct., App. Div. Oct. 10, 2017).
The insured, Air Master, worked…