In answering a certified question from the Fifth Circuit, the Texas Supreme Court held that the eight-corners rule applied when determining the duty to defend even if the policy did not promise to defend suits that were "groundless, false or fraudulent." Richards v. State Farm Lloyds, 2020 WL 1313782 (Tex. March 20
Dispute Over Number of Occurrences Remanded by Alaska Supreme Court
By Tred R. Eyerly on
The Alaska Supreme Court remanded to the trial court to determine whether the parties reached agreement in their settlement on the number of occurrences. McCormick v. Chippewa, Inc., 2020 Alaska LEXIS 20 (Alaska March 20, 2020).
Brent McCormick was injured while working aboard the vessel owned by Chippewa, Inc. McCormick…
Accident Away From Insured Premises Covered Under Homeowners Policy
By Tred R. Eyerly on
The insured was covered under his homeowner's policy when two visitors to an uninsured location were killed by carbon monoxide poisoning. Green Mountain Ins. Co., Inc. v. Wakelin, 140 N.E. 3d 418 (Mass. 2020).
Wakelin owned a cabin without electricity in a remote location. He purchased a gasoline-powered generator. He…
Hawaii Insurance Division Issues Request to Insurers on COVID-19
By Tred R. Eyerly on
The Hawaii Insurance Commissioner has requested that admitted and non-admitted insurers offering policies in Hawaii take special consideration of policyholder impacted by COVID-19. The March 27, 2020 bulletin reads:
The impact on individuals and businesses due to COVID-19 nationwide is evident in the daily news coverage. The anticipated negative impact on individuals and
…
Pennsylvania Court Upholds Executive Order Closing Non-Essential Businesses Due to Coronavirus
By Tred R. Eyerly on
The Governor's Executive Order compelling the closure of non-essential businesses to reduce the spread of coronavirus survived a challenge before the Pennsylvania Supreme Court. Friends of Devito v. Wolf, 2020 Pa. LEXIS 1987 (Pa. April 13, 2020). The case does not involve coverage issues, but the court's acknowledgment and description of…
No Coverage for Cyber Theft
By Tred R. Eyerly on
Two endorsements precluded coverage for cyber theft experienced by the insured. Midlothian Enterprises, Inc. v. Owners Insurance Company, 2020 U.S. Dist. LEXIS 30237 (E.D. Va. Feb. 20, 2020).
JoAnne Davis received an email from the Midlothian president and shareholder, E. Bryce Powell, asking her to wire money to a specified bank…
Assignment of Claims to Contractor Barred under Iowa Law
By Tred R. Eyerly on
The Iowa Supreme Court affirmed the lower court's denial of the policy holder's assignment to his contractor of claims under his homeowners policy. 33 Carpenters Construction, Inc v. Cincinnati Ins. Co.,2020 Iowa Sup. LEXIS 15 (Iowa Feb. 14, 2020).
The insured's home suffered damage from a hailstorm and windstorm. He…
Insurer’s Motion for Summary Judgment on Faulty Workmanship Claims Denied
By Tred R. Eyerly on
The insurer unsuccessfully sought summary judgment based upon the underlying complaint's allegations of damage caused by faulty workmanship. Barton v. Nationwide Mut. Fire Ins. Co., 2020 U.S. District. LEXIS 25943 (D. Ala. Feb. 14, 2020).
The Bartons contracted with Stacy Alliston Design and Building, Inc. (Stacy) to build their home…
Insurer’s Motion to Dismiss Granted
By Tred R. Eyerly on
The insurer's motion to dismiss a bad faith count was granted because the existence of coverage was "fairly debatable" under New Jersey law. Merchants Mut. Ins. Co. v. 215 14th St., LLC, 2020 U.S. District. LEXIS 23664 (D. N. J. Feb. 10, 2020).
Coverage for damage to the insured's commercial building…
Insurer Must Defend Negligent Misrepresentation Claims
By Tred R. Eyerly on
The Missouri Court of Appeals reversed the trial court's ruling that the insured's policy did not cover claims based upon negligent misrepresentation. Am. Family Mut. Ins. Co. v. Sharon, 2020 Mo. App. LEXIS 123 (Mo. Ct. App. Feb. 4, 2020).
Robert Sharon sued Gregory and Kristine Schwenzer for, among other…