The California Court of Appeal reversed the trial court's granting of the insurer's demurrer and found the insured adequately pled a claim of direct physical loss or damage due to the presence of COVID-19. Mariana Pacific Hotel & Suites, LLC v. Fireman's Fund Ins. Co., 2022 Cal. App. LEXIS 608 (Cal. Ct.
Claim for Punitive Damages Based on Insurers’ Alleged Bad Faith Business Practices Fails
By Tred R. Eyerly on
The court granted the insurer's motion to dismiss the bad faith claim based upon allegations of a general business practice of acting recklessly toward an insured's rights under the policy. Sandpiper Isle Condo. Ass'n v. Empire Indem. Ins. Co., 2022 U.S. Dist. LEXIS 114279 (M.D. Fla. June 28, 2022).
Sandpiper…
Awarding Insurer Summary Judgment Before Discovery Completed Reversed
By Tred R. Eyerly on
The Florida Court of Appeal reversed the trial court's awarding of summary judgment to the insurer because discovery was not completed. Sacramento v. Citizens Prop. Ins. Corp., 2022 Fla. App. LEXIS 4292 (Fla. Ct. App. June 22, 2022).
The insured filed a claim under the all-risk policy for water damage…
COVID-19 Business Interruption Claim under Environmental Policy Survives
By Tred R. Eyerly on
The court determined there was coverage for business interruption due to COVID-19 under an Environmental policy. Sunstone Hotel Investors, Inc. v. Endurance American Spec. Ins. Co., 2022 U.S. Dist. LEXIS 11147 (C.D. Cal. June 15, 2022).
Sunstone was a real estate investment trust that had an interest in 20 hotel…
No Coverage for Repairs Made Before Suit Filed
By Tred R. Eyerly on
After a hurricane damaged the building the insured was constructing, there was no coverage under the CGL policy for repairs the insured made in the absence of a suit being filed. Planet Construction J2911 LLC. v. Gemini Ins. Co., 2022 U.S. Dist. LEXIS 105468 (W.D. La. June 13, 2022).
Planet…
Coverage for Named Windstorm Removed by Insured, Terminating Such Coverage
By Tred R. Eyerly on
Over a series of policies, the insured had no coverage for named windstorms when it was removed from the policies in return for a reduced premium. Shiloh Christian Ctr. v. Aspen Sec. Ins. Co. 2022 U.S. Dist. LEXIS 100959 (M. D. Fla. May 9, 2022).
Plaintiff had coverage from Aspen…
Fifth Circuit Certifies Questions to Texas Supreme Court on Concurrent Causation Doctrine
By Tred R. Eyerly on
The Fifth Circuit certified unanswered questions on the concurrent causation doctrine to the Texas Supreme Court. Overstreet v. Allstate Vehicle & Prop, Ins. Co., 2022 U.S. App. LEXIS 13582 (5th Cir. May 19, 2022).
The insured alleged that a hail storm damaged his roof. The roof was three years old…
Faulty Workmanship Claims Amount to Multiple Occurrences
By Tred R. Eyerly on
In a recommended decision, the magistrate found that claims of faulty workmanship against the insured constituted multiple occurrences. Millsap Waterproofing, Inc. v. United States Fire Ins. Co., 2022 U.S. Dist. LEXIS 90112 (S.D. Tex. May 19, 2022).
Maravilla Condominiums in Galveston, Texas was damaged by Hurricane Ike in 2008. While…
Insurer Has Duty to Defend Sub-Contractor
By Tred R. Eyerly on
Interpreting Connecticut law, the federal district court had that the insured sub-contractor was entitled to a defense. County Wide Mech. Servs. LLC v. Regent Ins. Co., 2022 U.S. Dist. LEXIS 86726 (D. Conn. May 13, 2022).
The underlying plaintiff, The Saybrook at Haddam, entered a contract with PAC Group to…
Federal District Court Submits Certified Question to Maryland Court of Appeals on COVID-19 Claim
By Tred R. Eyerly on
In an unusual move for a federal district court handling COVID-19 claims, a certified question was submitted to the Maryland Court of Appeals for an interpretation of state law. Tapestry, Inc. v. Factor Mut. Ins. Co., 2022 U.S. Dist. LEXIS 75665 (D. Md. April 25, 2022).
Tapestry owned three luxury…