In a case of first impression, the Supreme Court of New York, Appellate Division, found the insurer had no right to reimbursement of defense costs paid to defend the insured. Am. W. Home Ins. Co. v. Gjoaj Realty & Mgt. Co., 2020 N.Y. App. Div. LEXIS 8286 (N.Y. App. Div. Dec. 30
Cherokee Nation Prevails on Summary Judgment in COVID-19 Case
By Tred R. Eyerly on
The Oklahoma trial court granted partial summary judgment to the Cherokee Nation for its business interruption claim due to the mandated closure of its casinos. Cherokee Nation, et al v. Lexington Ins. Co., et al., Case No. CV-10-150, Order Granting Summary Judgment (Okla. Dist. Ct. Jan. 28, 2021). The decision is here…
Insured’s Expectations of Coverage Allows Escape from Dismissal in COVID-19 Claim
By Tred R. Eyerly on
While the court found no allegations of direct physical loss in a claim arising from COVID-19, the insured survived a motion to dismiss based upon its expectation of coverage. Humans & Res. v. Firstline Nat'l Ins. Co., 2021 U.S. Dist. LEXIS 3998 (E.D. Pa. Jan. 8, 2021).
The insured owned…
California Superior Court Overrules Insurer’s Demurrer on COVID-19 Claim
By Tred R. Eyerly on
A Superior Court in California overruled the insurer’s demurrer to the policy holder’s complaint seeking business interruption coverage after government shutdown orders were issued because of the coronavirus pandemic. Goodwill Industries of Orange County, California v. Philadelphia Indemnity Ins. Co., Cal. Superior Ct., Civil No. 30-2020-01169032-CU-IC-CXC (Minute Order Jan. 28,, 2021). The…
No Duty to Indemnify Where No Duty to Defend
By Tred R. Eyerly on
The Montana Supreme Court held that because there was no duty to defend the insureds' intentional acts, the insurer had no duty to defend. Farmers Ins. Exch. v. Wessel, 2020 Mont. LEXIS 2617 (Mont. Dec. 22, 2020).
The insureds' property was accessed by Turk Road. Turk Road was also used…
Policyholder Prevails on Summary Judgment in COVID-19 Business Interruption Claim
By Tred R. Eyerly on
Summary judgment was awarded to the insureds on their business interruption claim due to governmental closures during the COVID-19 pandemic. Henderson Rd. Rest. Sys. v. Zurich Am. Ins. Co., 2021 U.S. Dist. LEXIS 9521 (N.D. Ohio, Jan. 19, 2021).
Plaintiffs owned restaurants in several states. In the spring of 2020…
Ninth Circuit Finds Excess Carrier Can Challenge Primary Insurer’s Settlement Payment and Erosion of Limits
By Tred R. Eyerly on
The court found that the excess carrier had grounds to challenge the primary carrier's allocation of a settlement payment. Scottsdale Ins. Co. v. Certain Underwriters at Lloyds, London, 2020 U.S. App. LEXIS 39771 (9th Cir Dec. 18, 2020).
in the underlying case, Underwriters settled on behalf of the insured law…
Injury to Employees Endorsement Eliminates Coverage for Insured Employer
By Tred R. Eyerly on
The court granted summary judgment to the insurer based upon an endorsement which barred coverage for injuries to employees. Northfield Ins. Co. v. Z&J Mgt. LLC, 2020 N.Y. Misc. LEXIS 10801 (N.Y. Sup. Ct. Dec. 18, 2020).
Ravi Sooklal sued his employer, Z&J Management LLC (Z&J), for injuries at the job…
Motion to Dismiss Policyholder’s COVID-19 Claim Denied
By Tred R. Eyerly on
The court denied the insurer's motion to dismiss a preschool's claim for business interruption due to COVID-19. An endorsement provided coverage for shutdowns by order or recommendation of government authorities due to a communicable disease. Baldwin Acad., Inc. v. Markel Ins. Co., 2020 U.S. Dist. LEXIS 239916 (S.D. Calif. Dec. 21, 2020). …
Claim Against Broker Survives Motion to Dismiss
By Tred R. Eyerly on
The insured's complaint against its broker for failure to secure adequate coverage survived a motion to dismiss. Broecker v. Conklin Prop., LLC, 2020 N.Y. App. Div. LEXIS 7399 (Dec. 2, 2020).
Conklin Property, LLC purchased real property and entered into a contract with JJC Contracting, Inc. for construction and renovation…