The Colorado Supreme Court determined that the insurer defending under a reservation of rights could not intervene in the underlying case after the insured assigned its rights to any bad faith claim against the insurer. Auto-Owners Ins. Co. v. Bolt Factory Lofts Owners Ass'n, Inc., 2021 Colo. LEXIS 365 (Colo. May 24
Civil Authority Claim Survives Motion to Dismiss
By Tred R. Eyerly on
The Rhode Island Superior Court denied the insurer's motion to dismiss a claim under Civil Authority coverage related to closures of business due to COVID-19. Atwells Realty Corp. v. Scottsdale Ins. Co., 2021 R.I. Super. LEXIS 40 (R.I. Super. Ct. June 4, 2021).
Atwells operated a nightclub. Executive Orders issued…
Insured’s Claim for Hurricane Damage Survives Summary Judgment
By Tred R. Eyerly on
The insurer's motion for summary judgment seeking a determination that the insured's alleged hurricane damage was due to pre-existing loss was rejected by the court. Exhibit Network Int'l v. Union Ins. Co., 2021 U.S. Dist. LEXIS 114267 (S.D. Texas May 25, 2021).
The insured alleged that wind and rain from…
Mortgagors Seek Coverage Under Mortgagee’s Policy
By Tred R. Eyerly on
The mortgagor homeowners survived a motion to dismiss their claim for coverageunder the lender's property policy after their home suffered hurricane damage. Gary v. Am. Sec. Ins. Co., 2021 U.S. Dist. LEXIS 100010 (W.D. La. May 26, 2021).
Plaintiffs' home was mortgaged by Pennymac Loan Services, LLC. Pennymac held a…
Exclusion for Construction of Condominiums Includes Faulty Construction of Retaining Wall
By Tred R. Eyerly on
The exclusion for suits arising out of construction of condominiums encompassed the underlying claim for faulty construction of a retaining wall. HT Serv., LLC v. Western Heritage Ins. Co., 2021 U.S. App. LEXIS 16259 (10th Cir. June 1, 2021).
HT Services was a land developer. HT Services designed and constructed…
Court Dismisses Coverage Action In Lieu of Pending State Case
By Tred R. Eyerly on
The insurer's coverage action was dismissed by the federal court in favor of the pending case in state court. Southern-Owners Ins. Co. v Marquez, 2021 U.S. Dist. LEXIS 108125 (S.D. Fla. May 4, 2021).
The underlying lawsuit was filed because of of an incident involving a golf cart on a…
Court Denies Motion to Dismiss Retailer’s COVID-19, Business Interruption Claim
By Tred R. Eyerly on
The insured furniture retailer survived a motion to dismiss its business interruption claim after government orders caused disruption of the insured's operations due to COVID-19. Susan Spath Hegedus v. Ace Fire Underwriters Ins. Co., 2021 U.S. Dist. LEXIS 88041 (E.D. Pa. May 7, 2021).
Plaintiff operated two locations in California.
Summary Judgment Granted to Hotel Chain in COVID-19 Claims
By Tred R. Eyerly on
A New Hampshire Superior Court granted a hotel chain summary judgment on its suit for coverage due to losses caused by COVID-19. Schleicher & Stebbins Hotels, LLC v. Starr Surplus Lines Ins. Cos., No. 217-2020-00309 (N.H. Super. Ct. June 15, 2021).
Government orders were issued restricting the operation…
Claims that COVID-19 Present on Property Survive Motion to Dismiss
By Tred R. Eyerly on
Plaintiffs successfully argued against a motion to dismiss by alleging COVID-19 was present on their premises and required repairs and alterations to their properties. Legacy Sports Barbershop LLC v. Cont'l Cas. Co., 2021 U.S. Dist. LEXIS 102545 (N. D. Ill. June 1, 2021).
Plaintiffs operated a barbershop, barbering school and…
Insured’s Failure to Prove Entire Collapse of Building Leads to Dismissal
By Tred R. Eyerly on
The Fifth Circuit affirmed the district court's dismissal of the insured's claim for damage to her home caused by collapse. Stewart v. Metropolitan Lloyds Ins. Co. of Texas, 2021 U.S. App. LEXIS 14221 (5th Girl May 13, 2021).
One evening, the insured was awakened by a loud bang that shook…