The federal district court agreed that a challenge to State Farm's practice of depreciating sales tax when calculating actual cash value (ACV) benefits payments to policyholders could go forward as a class action. Pitkin, et al. v. State Farm Fire and Cas. Co., 2025 U.S. Dist. LEXIS 134948 (July 15, 2025, N.
Broker’s Motion to Dismiss Denied
By Tred R. Eyerly on
The curt denied the broker's motion to dismiss the insured's claim that the broker negligently failed to provide the requested coverage. The Paper Tigers, Inc. v. Arch Ins. Group, Inc., et al, 2025 US. Dist. LEXIS 128114 (N.D. Ill. July 7, 2025).
The Paper Tigers, Inc. (Plaintiff) specialized in reworking paper to meet…
Insurer Must Defend Additional Insured
By Tred R. Eyerly on
The federal district court determined that the insurer must defend the additional insured even though it was premature to determine whether there was also a duty to indemnify. Liberty Mutual. Fire Ins. Co. v. Acuity Mut. Inx. Co., 2025 U.S. Dist. LEXIS 121429 (D. Nev. June 26, 2025).
Royal…
Court Finds California FAIR Plan Unlawful
By Tred R. Eyerly on
The Superior Court granted summary judgment to a policy holder who was issued a policy by the California's insurer of last resort, known as the FAIR Plan. Aliff v. California FAIR Plan Association, No. 21STCV200095 (Super. Ct. California June 24, 2025).
Plaintiff sued the California Fair Plan Association (CFP) arguing…
Court Resolves Carriers’ Dispute Over Which Must Defend
By Tred R. Eyerly on
The court agreed with Travelers that Lloyd's had a duty to defend the underlying personal injury case. Travelers Indem. Co. v. Underwriters at Lloyd's, 2025 U.S. Dist. LEXIS 118445 (S.D. N. Y. June 23, 2025).
Jerome Avenue owned a multi-tenant property in the Bronx, New York. Jerome Avenue leased…
Portion of COVID-19 Claim Resurrected on Appeal
By Tred R. Eyerly on
The Colorado Court of Appeal reversed, in part, the trial court's dismissal of the insured's COVID-19 claim. Spectrum Retirement Communities, LLC, et al v. Continental Casualty Company, 2025 Colo. App. LEXIS 876 (Colo. Ct. App. June 18, 2025).
Spectrum owned and operated forty-three senior living and memory care communities in…
Insured’s Claim Against Broker for Securing Inadequate Limits Fails
By Tred R. Eyerly on
The California Superior Court granted the agent's demurrer to dismiss the insured's claim for inadequate coverage. Westchester Playa Realty Alliance, Inc. v. City Roofing, Inc., 2025 Cal. Super. LEXIS 26902 (Cal. Super. Ct. June 4, 2015).
Westchester Playa Realty Alliance, Inc. leased property in Los Angeles. City Roofing, Inc. performed repairs…
Insurers’ Motion for Summary Judgment on Collapse Claim Granted in Part, Denied in Part
By Tred R. Eyerly on
The insurer's motion for summary judgment on the insured's collapse claim was partially granted, but mostly denied. LDG Rentals, LLC v. Western World Ins. Co., 2025 U.S. Dist. LEXIS 117063 (D. Kan. June 18, 2025).
LDG Rentals, LLC purchased a two-story, 125 year old building. LDC sought coverage for the…
New Mexico Appellate Court Upholds Cyber Breach Coverage for Insured
By Tred R. Eyerly on
The New Mexico Court of Appeals affirmed the trial court's granting of summary judgment to the insured, agreeing that there was coverage under the cyber policy for a fraudulent transfer of money. Kane v. New Mexico Health Connections, Inc., 2025 N.M. App. LEXIS 38 (N.M. Ct. App. June 16, 2025).
…
One Insurer Cannot Assert Equitable Estoppel to Force Another Insurer to Defend
By Tred R. Eyerly on
In a dispute over coverage obligations between two insurers, the court rejected one insurer's claim that the other insurer was equitably estopped from denying a defense. Associated Industries Ins. Co. v. Sentinel Ins. Co., 2025 U.S. Dist. LEXIS 114423 (S.D. N. Y. June 16, 2025).
Eduardo Molina was a construction…