The Fourth Circuit Court of Appeals reversed the District Court, holding that under Hawaii law, the insurer had a duty to defend based upon deposition testimony providing facts not found in the underlying complaint. Koppers Performance Chemicals, Inc. v. Argonaut-Midwest Ins. Co., 2024 U.S. App. LEXIS 15678 (4th Cir. June 27, 2024).
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…
Professional Services Exclusion Bars Coverage After Carbon Monoxide Leak
By Tred R. Eyerly on
The Illinois Appellate Court affirmed the trial court's dismissal of the insured's complaint after damage caused by a leak of carbon monoxide caused bodily injury. Allied Design Consultants, Inc. v. Pekin Ins. Co., et al., 2024 Ill. Ct. App. LEXIS 1433 (June 18, 2024).
Carbon monoxide leaked in a building…
Additional Insured Not Entitled to Coverage for Named Insured’s Defective Work
By Tred R. Eyerly on
The Court of Appeals for the Seventh Circuit determined there was no duty to defend or to indemnify the additional insured for the named insured's defective work. St. Paul Guardian Ins. Co., et al. v. Walsh Construction Co., 99 F. 4th 1035 (7th Cir. 2024).
The City of Chicago contracted with…
California Supreme Court Finds Vertical Exhaustion Applies to First-Level Excess Policies
By Tred R. Eyerly on
Addressing issues left open in its seminal decision in Montrose, the California Supreme Court found that the language in the first-level excess policies meant that the insured could access the policies upon exhaustion of the directly underlying policies purchased for the same policy period. Truck Ins. Exchange v. Kaiser Cement & Gypsum …
Insurers’ Motion to Determine Lack of Occurrence Fails
By Tred R. Eyerly on
The federal district court, interpreting Massachusetts law, found there were genuine issues of fact as to whether the insured's mixing of biodiesel with home heating fuel was an occurrence. United States Fire Ins. Co. v. Peterson's Oil Serv., Inc., 2024 U.S. Dist. LEXIS 106980 (D. Mass. June 17, 2024).
Homeowners…
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…
Full Coverage for Phishing Scam Not Established
By Tred R. Eyerly on
The California Court of Appeal affirmed the trial court's dismissal of the insured's claim for full coverage after suffering from the phishing scam. Door Sys. v. CFC Underwriting Limited, 2024 Cal. App. Unpub. LEXIS 3441 (Cal. Ct. App. June 3, 2024).
Door Systems was a leading distributer of integrated…
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…
Incorrect Information Provided on Insurance Application Defeats Claim for Coverage
By Tred R. Eyerly on
The Eleventh Circuit affirmed the district court's finding of no duty to defend or indemnify because of an answer on the insured's application for insurance. Snell v. United Specialty Ins. Co., 2024 U.S. App. 12733 (11th Cir. May 28, 2024).
Snell was hired by a family, the Westons, to turn an…