Under Florida law, the court granted the insurer's motion in limine to exclude evidence of bad faith until a breach of the policy was established, but denied the motion insofar as it sought to exclude evidence of bad faith claims handling. Monterey at Malibu Bay Condo. Ass'n v. Empire Indem. Ins. Co.
Disagreeing with Hawaii Supreme Court, South Carolina Holds Post-Lost Assignment Valid
The South Carolina Supreme Court held that a post-loss assignment of rights under the policy was valid even though consent of the insurer was not requested. PCS Nitrogen, Inc. v. Cont'l Cas. Co., 2022 S.C. LEIXS 54 (S.C. April 13, 2022).
In 1966, Columbia Nitrogen Corporation (Old CNC) began operating…
Hawaii Legislature Passes Two Insurance-Related Bills in 2022 Session
The 2022 Hawaii legislative session has adjourned with two insurance-related bills passed and and now pending before the governor. The new legislation amends existing statutes that are not within the everyday parlance of coverage lawyers. The bills are as follows:
HB1980 – The bill modifies Haw. Rev. Stat. 346-59.1 regarding coverage for telehealth.
Insurers Must Defend Allegations of Faulty Workmanship
Granting the insured's motion for partial judgment on the pleadings, the court determined the insurers had a duty to defend. Suez Treatment Solutions, Inc. v. Ace Am. Ins. Co. & Liberty Mut. Fire Ins. Co., 2022 U.S. Dist. LEXIS 59044 (S. D. N. Y. March 30, 2022).
Suez Treatment Solutions…
Insurer in Bad Faith Due to Adjuster’s Failure to Keep Abreast of Case Law
The federal district court found that the insurer acted in bad faith when the claim was denied based on the adjuster's lack of knowledge of recent case law in Washington. Sec. Nat'l Ins. Co. v. Constr. Assocs. of Spokane, 2022 U.S. Dist. LEXIS 53533 (E.D. Wash. March 24, 2022).
Construction…
No Duty to Defend Faulty Workmanship Under Hawaii Law, but All is not Lost for Insured Contractor
The federal district court found no duty to defend claims of faulty workmanship under certain policies issued to the insured contractor, but rejected arguments made by the Insurers regarding various provisions of the general liability and excess policies. St. Paul Fire & Marine Ins. Co. v. Bodell Consr. Co., 2022 U.S. Dist.
Summary Judgment for Insurer Reversed Based on Expert Opinion
After the trial court discounted the insured's expert witness and granted summary judgment to the insurer, the Florida District Court of Appeal reversed. Morales v. Citizens Prop. Ins. Corp., 2022 Fla. App. LEXIS 1831 (Fla. Ct. App. March 15, 2022).
The insureds' property was allegedly damaged by Hurricane Irma in…
Underlying Plaintiff Lacks Standing to Challenge Denial of Defense to Insured
The Eleventh Circuit held that a victim of sexual abuse could not appeal a declaratory judgment that the insurer had no duty to defend the accused insured. Nationwide Mut. Ins. Co. v. Barrow, 2022 U.S. App. LEXIS 8267 (11th Cir. March 29, 2022).
A.B. was sexually abused by David Barrow…
Pollution Exclusion Found Ambiguous
The Mississippi Supreme Court found the pollution exclusion ambiguous under the facts presented. Omega Protein, Inc. v. Evanston Ins. Co., 2022 Miss. LEXIS 90 (Miss. March 31, 2022).
Omega Protein, Inc., entered a contract with Ascu-fab to perform welding and other fabrication work at their facility. Accu-fab was required to…
Claims Against Broker Dismissed
Claims that the broker failed to secure adequate coverage for condominium owners were dismissed. Ting Lin v. Mountain Valley Indemn. Co., 2022 N.Y. Misc. LEXIS 1254 (N.Y. Sup. Ct. March 10, 2022).
The amended complaint alleged the agent, Century Max Inc., breached its duty to advise and sell to plaintiffs…