The California Court of Appeal found that the insured alleged facts sufficient to trigger coverage under a civil authority endorsement after government shutdown orders due to COVID-19 caused the insured to close its business. Butter Nails & Waxing v. Underwriters at Lloyd's, 2022 Cal. App. Unpub. LEXIS 5264 (Cal. Ct. App. Aug.
Colorado Federal Court Confirms Consequetial Property Damage, But Finds No Coverage for Subcontractor
By Tred R. Eyerly on
A recommended decision from the Magistrate Judge of the Federal District Court for the District of Colorado found there was no coverage for the subcontractor's faulty workmanship, but recognized that Colorado finds consequential damages to be property damage. Indian Harbor Ins. Co. v. Houston Cas. Co., 2022 U.S. Dist. LEXIS 117857…
Hawaii Appellate Court Finds Agent May Be Liable for Failing to Submit Claim
By Tred R. Eyerly on
After the agent informed the insured there was no coverage and submitting a claim would be a useless effort, the Hawaii Intermediate Court of Appeal reversed the trial court's dismissal of the insured's suit against the agent. Pflueger, Inc. v. AIG Holdings, Inc., 2022 Haw. App. LEXIS 279 (Haw. Ct. App. Sept.
No Coverage for Attorney’s Fee Award Found to be Sanction
By Tred R. Eyerly on
The court rejected the attorneys' claim that an award of attorney's fees awarded for pursuing a frivolous claim under the Individuals with Disabilities Education Act (IDEA) was not a "sanction" and was covered under the policy Wesco Ins. Co. v. Roderick Linton Belfance, LLP, 2022 U.S. App. LEXIS 18263 (6th Cir. July…
Late Notice Bars Insured’s Claim for Loss Caused by Hurricane
By Tred R. Eyerly on
The court found that the failure to provide prompt notice of damage caused by Hurricane Irma barred plaintiff's claim for coverage. Garcia v. Scottsdale Ins. Co., 2022 U.S. Dist. LEXIS 149312 (S.D. Fla. Aug. 18, 2022).
On September 10, 2017, plaintiff's property allegedly suffered damage due to Hurricane Irma. Shortly…
Insurer Fails to Establish Prejudice Due to Late Notice
By Tred R. Eyerly on
Summary judgment awarded to the insurer was reversed because the insurer presented no evidence of prejudice caused by untimely notice. Perez v. Citizens Prop. Ins. Corp., 2022 Fla. App. LEXIS 5435 (Fla. Ct. App. Aug. 10, 2022).
The insureds' home suffered water damage due to Hurricane Irma around September 10…
South Carolina Supreme Court Finds Presence of COVID-19 is Not “Direct Physical Loss or Damage”
By Tred R. Eyerly on
Answering a certified question, the South Carolina Supreme Court determined that the presence of COVID-19 and/or government shutdown orders did not constitute "direct physical loss or damage" to property. Sullivan Mgmt. v. Fireman's Fund Ins. Co., 2022 S.C. LEXIS 90 (S.C. Sup. Ct. Aug. 10, 2022).
Sullivan Management, LLC operated…
Louisiana Court of Appeals Denies Insurer’s Motion for Rehearing on COVID-19 Claim
By Tred R. Eyerly on
After reversing the trial court's denial of the insured's petition for declaratory judgment on a business interruption claim, the Louisiana Court of Appeals denied the insurer's motion for rehearing en banc. Cajun Conti LLC v. Certain Underwriters at Lloyd's, 2022 La. App. LEXIS 1278 (La. Ct. App. Aug. 8, 2022).
…
No Duty to Defend under Homeowner’s Policy Where No Occurrence, No Property Damage
By Tred R. Eyerly on
The federal district court for the district of Hawaii granted the insurer's motion for summary judgment determining there was not duty to defend and no duty to indemnify the insured under a homeowner's policy. Allstate Ins. Co. v. Rosfeld, 2022 U.S. Dist. LEXIS 139123 (D. Haw. Aug. 4, 2022).
The…
Actual Cost Value Includes Depreciation of Repair Labor Costs
By Tred R. Eyerly on
The court granted the insurer's motion to dismiss after determining that benefits paid for actual cost value (ACV) did not include repair or replacement labor costs. Shahan v. Allstate Vehicle & Prop. Ins. Co., 2022 U.S. Dist. LEXIS 135488 (W.D. La. July 29, 2022).
Hurricane Laura damaged the insured's home.