In St. Paul Mercury Ins. Co. v. The Viking Corp., No. 07-1948 (7th Cir. Aug. 21, 2008), the insurer paid for damages to the insured’s building and then filed suit against a fire sprinkler manufacturer. The insured occupied its building for six months when a fire sprinkler manufactured by Viking was activated
Flood Exclusion Bars Coverage
By Tred R. Eyerly on
Sometimes you read an opinion and ask why the case was ever filed. What was the plaintiff thinking? This was my impression in reading Vu v. National Fire Indemnity Exchange, Civil Action No. 07-6529, 2008 U.S. Dist. LEXIS 58820 (E. D. La. Aug. 4, 2008).
The insureds’ business, located in…
Hawaii ICA Remands Case to Consider Whether Insurer Acted in Bad Faith
By Tred R. Eyerly on
After enduring a tortured, ultimately failed attempt to negotiate a settlement under a renter’s protection policy, the insured sued. The trial court granted United Services Automobile Association’s motion for summary judgment, but the Hawaii Intermediate Court of Appeals vacated the decision and remanded for a determination of whether USAA’s interpretation of its policy…
Galveston, Texas: In the Path of Hurricanes
By Tred R. Eyerly on
My wife and I are in Houston. Houston is not a vacation destination, but we are here on personal business.
On Saturday, we took a side trip to Galveston. Hurricanes were on my mind. Galveston was the sight of a devastating hurricane in 1900. Further, Tropical Storm Fay is currently lurking…
Ninth Circuit Upholds Flood Exclusion in Katrina Case
By Tred R. Eyerly on
Following the Fifth Circuit, the Ninth Circuit recently found a flood exclusion to be unambiguous. See Northrop Grumman Corp. v. Factor Mut. Ins. Co., No. 07-56760 (9th Cir. Aug. 14, 2008).
The insured, Northrop, owned a shipyard in Pascagoula, Mississippi. Northrop's primary policy, issued by Factory Mutual, was an "all…
Insurer not Bound by Insured’s Factually Deficient Discovery Responses in Subrogation Litigation
By Tred R. Eyerly on
When an insurer pursues a subrogation claim, can the defendant rely on the insureds’ factually deficient discovery responses in a motion for summary judgment? The court in Great American Ins. Co. v. Gordon Trucking, Inc., F053336 (Cal. Ct. App. July 29, 2008) held the defendant could not rely on the insureds’ factually…
Colorado Court Confirms Policy’s Anti-Concurrent Causation Clause
By Tred R. Eyerly on
Imagine an case involving a policy’s anti-concurrent causation clause which (1) does not arise from a Gulf State; and (2) does not concern the flood/wind dichotomy. A recent case fits this criteria: Colorado Intergovernmental Risk Sharing Agency v. Northfield Ins. Co., 2008 Colo. App. LEXIS 1165 (Colo. Ct. App. July 24, 2008).
Texas Allows Insurers to Indemnify Punitive Damages
By Tred R. Eyerly on
The Texas Supreme Court recently held a liability insurer may indemnify an award of punitive damages imposed because of an insured’s gross negligence. Public policy, the court reasoned, favored freedom of contract. The court, however, limited this decision to the workers’ compensation context.
Of note, the Texas court noted that Hawaii has statutorily adopted the…
Coverage Denied Based in Insufficient Proof of Loss Form
By Tred R. Eyerly on
The plaintiff in Evanoff v. The Standard Fire Ins. Co., 2008 U.S. App. LEXIS 15261 (6th Cir. July 18, 2008) suffered flood damage at his condominium. He had purchased a Standard Flood Insurance Policy from Standard Fire for his condominium and its contents. The terms of the policy were governed by 44…
Insurer Fails to Dismiss Bad Faith Count on Summary Judgment
By Tred R. Eyerly on
In dual decisions, two motions for partial summary judgment were decided by the federal district court in Louisiana involving State Farm and its insureds. See Perrien v. State Farm Ins. Co., 2008 U.S. Dist. LEXIS 53820 (E.D. La. July 14, 2008); Perrien v. State Farm Ins. Co., 2008 U.S. Dist. LEXIS…