In a long awaited decision regarding California's liability for damages caused by the Stringfellow Acid Pits case, the California Supreme Court adopted the "all sums" method of allocating coverage among multiple insurers for long-tail claims. Further, the court concluded that stacking of policy limits was consistent with the CGL policy language. See State v.
Number of Occurrences Considered in Food Poisoning Case
By Tred R. Eyerly on
The court considered the number of occurrences when food infecting several hundred people with E. coli was prepared and served at two different places. Republic Underwriters Ins. Co. v. Moore, 2012 U.S. App. LEXIS 14907 (10th Cir. July 20, 2012).
The insured restaurant prepared and served E. coli-contaminated food between August 15…
Policy Limited to Third Party Liabiltiy Does not Provide First Party Coverage
By Tred R. Eyerly on
When the additional insured argued it was entitled to coverage for loss to its cars due to a rain storm, the court disagreed because the endorsement only provided for third party coverage. BMW of N. Am. v. Complete Auto Recon Servs., 2012 S.C. App. LEXIS 218 (S.C. Ct. App. Aug. 1, 2012).
BMW had…
Homeowner’s Liability Policy Provides No Coverage for Terrible Accident
By Tred R. Eyerly on
In a sad fact situation, the property owner had no coverage when sued for the death of one child and serious injury to another who were playing on his property. Allstate Ins. Co. v. Naai, No. 10-15415 (9th Cir. July 24, 2012).
A driver backed her vehicle over two children on property…
Insurer Must Defend in “Personal Injury” and/or “Advertising Injury” Suit
By Tred R. Eyerly on
The California Court of Appeal reversed the trial court's ruling and held that the insurer had a duty to defend a "personal injury" and/or "advertising injury" suit. See Travelers Prop. Cas. Co. of Am. v. Charlotte Russe Holding, Inc., 2012 Cal. Ct. App. LEXIS 807 (Cal. Ct. App. July 13, 2012).
A clothing…
Ensuing Loss Found Ambiguous, Allowing Coverage
By Tred R. Eyerly on
The court determined the ensuing loss provision was ambiguous and found coverage for the home owners in Platek v. Town of Hamburg, 2012 N.Y. App. Div. LEXIS 5371 (N.Y. App. Div. July 6, 2012).
The burst of a water main caused water damage to the insureds' basement. Allstate disclaimed coverage under exclusion 4 for…
Communications Between Insurer’s Attorney and Injured Party’s Employer Not Privileged In Workers Compensation Context
By Tred R. Eyerly on
The Texas Supreme Court considered whether communications between the insurer's lawyer and the employer of the injured employee were privileged. See In Re XL Spec. Ins. Co., 2012 Tex. LEXIS 568 (Tex. June 20, 2011).
XL was Cintas Corporation's workers' compensation carrier. XL's policy required Cintas to cooperate in the investigation, settlement and…
Damage During Roof Repairs Account for Three Occurrences
By Tred R. Eyerly on
Southgate Gardens Condominium had buildings damaged by Hurricane Wilma in 2005. See Mid-Continent Cas. Co. v. Basedeo, 2012 U.S. App. LEXIS 11864 (11th Cir. June 12, 2012). First State Development Corporation was hired by Southgate to do repairs.
On November 1, 2005, First State completed tarping on the buildings. Thereafter, on November…
No Right To Select Counsel When Insurer Agrees to Defend Under Reservation of Rights
By Tred R. Eyerly on
The Fifth Circuit rejected the insured's argument that under Texas law it had a right to select its own counsel after the insurer agreed to defend, but under a reservation of rights. Navigator v. Nautilus Ins. Co., 2012 U.S. App. LEXIS 13342 (5th Cir. June 20, 2012).
The insured serviced the oil drilling…
Ensuing Loss Provision Does Not Salvage Coverage
By Tred R. Eyerly on
The Minnesota Court of Appeals affirmed the trial court's decision finding no coverage due to exclusions from the all-risk policy for losses related to mold, rot and condensation. Koskovich v. Am Family Mut. Ins. Co., 2012 Minn. App. Unpub. LEXIS 581 (Minn. Ct. App. June 25, 2012).
In 1978, the insureds purchased…