The insured's inability to present evidence of an agent's standard of professional care meant it could not succeed on a claim for failure to procure adequate coverage for damage to vacant property. Rayfield Pro., LLC v. Business Insurers of the Carolinas, Inc., 2012 N.C. App. LEXIS 1429 (N.C. Ct. App. Dec. 18, 2012).
Upcoming ABA Insurance Coverage Conference In Tucson
By Tred R. Eyerly on
The ABA, Section of Litigation, Insurance Coverage Litigation Committee's annual insurance seminar will be held again this year in Tucson from February 28 to March 2, 2013. As always, this year's conference will offer a number of informative, cutting-edge sessions on a variety of insurance coverage-related topics. Participants from across the country with varying perspectives on insurance…
Ninth Circuit Panel Addresses Hawaii Bar Members
By Tred R. Eyerly on
On Monday, February 11, 2013, the visiting panel of Ninth Circuit judges in town for oral arguments addressed members of the Hawaii State Bar Association. The event, entitled "Appellate Practice Tips," was hosted by the Federal Bar Association. The panel members were the Honorable Susan P. Graber, the Honorable Jay S. Bybee and the…
Update Coverage for Construction Defect Claims in Colorado
By Tred R. Eyerly on
Whether construction defect claims against an insured contractor or subcontractor are covered is undergoing an intense debate in Colorado that is reminiscent of the current coverage battle in Hawaii.
Although I missed the case until recently, the decision in Colo. Pool Sys. v. Scottsdale Ins Co., 2012 Colo. App. LEXIS 1732 (Colo. Ct.
Insurer’s Failure to Settle Does Not Justify Multiple Damages under Unfair Claims Settlement Law
By Tred R. Eyerly on
Although the insurer failed to understand the pertinent law that mandated coverage under the policy, its actions did not rise to an unfair claim settlement practice justifying multiple damages. Gelwan v. Vermont Mut. Ins. Co., 2013 U.S. app. LEXIS 210 (2nd Cir. Jan. 4, 2013).
In 1999, a contractor re-roofed the insureds'…
Kentucky Court Determines Anti-Assignment Provision Violates Public Policy
By Tred R. Eyerly on
In answering a certified question from the federal district court, the Kentucky Court found that a policy's anti-assignment provision was unenforceable. In Re Wehr Constructors, Inc. v. Assurance Co. of Am., 2012 Ky. LEXIS 183 (Ky. Released for Publication Dec. 20, 2012).
The Hospital hired Wehr Constructors to install concrete subsurfaces and…
Insurer’s Summary Judgment Arguments on Proper Trigger and Ensuing Loss Fail
By Tred R. Eyerly on
The insurer promoted a variety of arguments for summary judgment to deny coverage for water damage under a homeowner's policy. Strauss v. Chubb Indem. Ins. Co., 2013 U.S. Dist. LEXIS 224 (E.D. Wis. Jan. 2, 2013).
Construction of the insureds' home was completed in 1994. In October 2010, they discovered water damage…
Hawaii Federal Court Denies Motion to Certify Question on Coverage for Construction Defects
By Tred R. Eyerly on
Further demonstrating a difference of opinion between federal district court and state court trial judges, Judge Mollway denied a motion to certify a proposed question to the Hawaii Supreme Court regarding coverage for construction defects. Illinois Nat’l Ins. Co. v. Nordic PLC Constr., Inc., Civil No. 11-00515 SOM/KSC (Order Denying Defendant’s Motion to…
Insurer Must Produce Non-Privileged Documents in Bad Faith Litigation
By Tred R. Eyerly on
The insured moved for an order compelling the production of documents from the insurer after 180 pages were produced, nearly all of which were blank after redactions. See Panattoni Construction, Inc. v. Travelers Prop. Cas. Co. of Am., Case No. C11-1195RSM, Order on Motion to Compel (W.D. Wash., Dec. 14, 2012) (see order here…
Exclusions and Exceptions to Exclusions Explored
By Tred R. Eyerly on
The court considered the shifting burdens of proof regarding the liability policy's exclusions and exceptions to the exclusions. Ment Bros. Iron Works Co. Inc. v. Interstate Fire Cas. Co., 2012 U.S. App. LEXIS 25310 (2nd Cir. Dec. 11, 2102).
The building owner and developer hired a general contractor, who hired the insured…