Interpreting Hawaii law, the federal district court held that the standard for triggering the duty to defend is the same as the standard for the duty to advance costs under a D&O policy. Maui Land & Pineapple Co. v. Liberty Ins. Underwriters, 2018 U.S. Dist. LEXIS 56949 (D. Haw. April 3, 2018).
Water Leak Covered for First Thirteen Days
By Tred R. Eyerly on
The Florida Court of Appeals recently held the the policy's exclusion for repeated water seepage over a period of fourteen days or more does not exclude loss caused by the seepage for the first thirteen days. Hicks v. Am. Integrity Ins. Co. of Florida, 2018 Fla. App. LEXIS 2616 (Fla. Ct. App.
Suit Against Broker for Securing Inadequate Coverage Dismissed on Statute of Limitations Grounds
By Tred R. Eyerly on
The insured's suit against his broker for securing a policy with insufficient policy limits was dismissed when filed more than two years after the alleged professional negligence occurred. Pritchard v. Andy Houghton Ins. Agency, 2018 Cal. App. Unpub. LEXIS 1160 (Cal. Ct. App. Feb. 20, 2018).
Pritchard requested coverage for…
Construction Management Fee Exclusion Bars Coverage
By Tred R. Eyerly on
The general contractor was not entitled to a defense based upon an exclusion for construction management fees. Houston Cas. Co. v. Cavan Corp .of NY, Inc., 2018 N.Y. App. Div. LEXIS 1138 (N.Y. App. Div. Feb. 20, 2018).
Cavan entered a Construction Management Agreement ("CMA") under which it would act…
Broad Evidence Rule Used To Determine Actual Cash Value
By Tred R. Eyerly on
Affirming the District Court, the Seventh Circuit agreed that the broad evidence rule was used under Indiana law to determine actual cash value. Thorne v. Member Select Ins. Co., 2018 U.S. App. LEXIS 3265 (7th Cir. Feb. 12, 2018).
Thorne's home burned to the ground in February 2008. Member Select…
Defense Owed To Additional Insured General Contractor
By Tred R. Eyerly on
The Illinois Court of Appeals reversed summary judgment entered for the insurer and found the general contractor, an additional insured under the policy, was entitled to a defense. Hastings Mut. Ins. Co. v. Blinderman Constr. Co., Inc., 2017 Ill. App. LEXIS 661 (Ill. Ct. App. Oct. 24, 2017).
Blinderman was…
Additional Insured Not Entitled to Cumis Counsel When Pursuing Cross-Claim Against Insurer
By Tred R. Eyerly on
The insured contractor was not entitled to independent Cumis counsel despite suing the insurer in a cross-claim. Centex Homes v. St. Palu Fire & Marine Ins. Co., 2018 Cal. App. LEXIS 45 (Cal. Ct. App. Jan. 22, 2018).
Homeowners sued Centex Homes for construction defects. Centex tendered defense of the suit to…
Jury Instruction That Fails to Utilize Concurrent Cause for Property Loss is Erroneous
By Tred R. Eyerly on
The Florida District Court reversed erroneous jury instructions that adopted the efficient proximate cause doctrine in determining whether the insurer was responsible for the insureds’ collapsed roof. Jones v. Federated National Ins. Co., 2018 Fla. App. LEXIS 561 (Fla. Ct. App. Jan. 17, 2018).
The insureds filed a claim for their damaged roof, …
Flood Claim Filed After Rejection of Proof of Loss is Too Late
By Tred R. Eyerly on
The Third Circuit affirmed the district court's dismissal of the insured's lawsuit for denial of flood coverage after the complaint was filed more than one year after the insurer rejected the proof of loss. Migliaro v. Fidelity Nat'l Indem. Ins. Co., 2018 U.S. App. LEXIS 2097 (3d Cir. Jan. 29, 2018).
…
Absence of Property Damage Leads to Rejection of Insured’s Claim
By Tred R. Eyerly on
Affirming the district court, the Eighth Circuit found that deteriorated bags which unintentionally mixed with landscaping materials did not amount to property damage under the CGL policy. Decker Plastics Corp. v. West Bend Mut. Ins. Co., 2018 U.S. App. LEXIS 2085 (8th Cir. Jan. 29, 2018). The district court's decision was the…