The Fourth Circuit certified the following question to the South Carolina Supreme Court: Does South Carolina law support application of the "at issue" exception to the attorney-client privilege such that a party may waive the privilege by denying liability in its answer? In Re: Mt. Hawley Ins. Co., 2018 U.S. App. LEXIS
Windstorm Exclusion Found Ambiguous
By Tred R. Eyerly on
The Second Circuit reversed the District Court's issuance of summary judgment to the insurer because a windstorm exclusion was deemed ambiguous. 7001 East 71st Street, LLC v. Continental Cas. Co., 2018 U.S. App. LEXIS 17334 (2nd Cir. June 26, 2018).
A windstorm during Hurricane Sandy caused the roof of 7001…
Insurer Must Defend Despite Exclusion for Claims Arising Out of Contract
By Tred R. Eyerly on
The Fifth Circuit reversed the district court's dismissal of the insured's complaint by granting the insurer's motion for judgment on the pleadings. Spec's Family Partners, Ltd. v. Hanover Ins. Co., 2018 U.S. App. LEXIS 17246 (5th Cir. June 25, 2018).
Spec's was a specialty retail chain that accepted payments from…
Motion to Dismiss Insureds’ Counterclaim on the Basis of Prior Knowledge Denied
By Tred R. Eyerly on
The insurer unsuccessfully moved to dismiss portions of the insureds' counterclaim based upon prior knowledge. Hudson Spec. Ins. Co. v. Talex Enter., 2018 U.S. Dist. LEXIS 105598 (S. D. Miss. June 25, 2018).
The insureds' building collapsed in McComb, Mississippi. Pubic utilities were damaged and traffic disrupted. The City sued…
Insurer’s Motion to Dismiss Case for Collpase Coverage Denied
By Tred R. Eyerly on
In yet another collapse case from Connecticut, the federal district court denied the insurer's motion to dismiss. Maki v. Allstate Ins. Co., 2018 U.S. Dist. LEXIS 102708 (D. Conn. June 20, 2018).
In February 2016, the insureds noticed a series of cracks throughout the basement walls of their home. The…
Attorneys’ Fees Awarded “Because Of” Property Damage Are Covered by Policy
By Tred R. Eyerly on
The Ninth Circuit upheld the District Court’s decision that the insured Association of Apartment Owners was entitled to coverage for the attorneys’ fees incurred [prior post here].Ass’n of Apartment Owners of the Moorings, Inc. v. Dongbu Ins. Co., Ltd., 2018 U.S. App. LEXIS 20251 (9th Cir. July 20, 2018).…
Insurer’s Denial of Claim for Faulty Workmanship Does Not Survive Summary Judgment
By Tred R. Eyerly on
The court granted the insured's motion for summary judgment despite the insurer's denial based upon faulty workmanship. Engineered Structures, Inc. v. Travelers Prop Cas. Co. of Am., 2018 U.S. Dist. LEXIS 102822 (D Idaho June 18, 2018).
Engineered Structures, Inc. (ESI) contracted with Fred Meyer Stores, Inc. to build a…
Coverage for Loss Due to Lava Flow, Volcanic Eruption Addressed by SuperLawyers
By Tred R. Eyerly on
As homeowners on the Big Island contemplate pursuing claims due to loss caused by volcanic eruption or lava flow, SuperLawyers has a post addressing some of my thoughts on the issue. The post is here.
Arizona Upholds Assignment of Post-Loss Benefits
By Tred R. Eyerly on
The Arizona Court of Appeals upheld the insured's assignment of benefits despite the policy's anti-assignment provision. Farmers Ins. Exchange v. Honorable David Udall, 2018 Ariz. Ct. App. LEXIS 94 (Ariz. June 12, 2018).
Farmers issued homeowners' policies to four homeowners who later required water damage mitigation and restoration services. Each…
Connecticut Supreme Court Again Asked to Determine the Meaning of Collpase
By Tred R. Eyerly on
Faced with a series of policies, earlier ones which did not define collapse, newer policies which did, the court determined there was a possibility of coverage under the older policies which did not define collapse. Vera v. Liberty Mut. Fire Ins. Co., 2018 U.S. Dist. LEXIS 100548 (D. Conn. June 15, 2018).…