Although the homeowners did not own their homes when the subcontractors completed their work, the general contractor was still covered as an additional insured for the homeowners' suits based on the ongoing operations endorsement in the subcontractors' policies. McMillin Mgmt. Servs. v. Fin. Pac. Ins. Co., 2017 Cal. App. LEXIS 1000 (Cal.
SEC Inquiries Not an Administrative Proceeding or Covered Claim
By Tred R. Eyerly on
The Tenth Circuit held that inquiry notices sent to the insured by the Securities and Exchange Commission were not a claim under a claims-made Directors' and Officers' policy. MusclePharm Corp. v. Liberty Ins. Underwriters, Inc., 2017 U.S. App. LEXIS 20233 (10th Cir. Oct. 17 2017).
The SEC mailed a letter…
Ten Years and Counting – Entering Eleventh Year of Blogging
By Tred R. Eyerly on
This blog reaches the ten year mark this week. We started in December 2007, 1143 posts ago. Blogging has served as a invaluable self-education on multiple coverage issues in an effort to keep abreast of the constantly changing landscape. We hope readers have found the posts to be useful and informative.
Two Damon…
Denial of Claim Upheld When Insured Refuses to Attend Examination Under Oath
By Tred R. Eyerly on
The California Court of Appeal upheld the trial court's award of summary judgment to the insurer who had denied a claim for failure to attend a second Examination Under Oath (EUO). Munoz v. State Farm General Ins. Co., 2017 Cal. App. Unpub. LEXIS 7728 (Cal. Ct. App. Nov. 9, 2017).
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Insurer’s Attempt to Limit Additional Insured Status Fails
By Tred R. Eyerly on
The court disagreed with the insurer's attempt to limit additional insured status based upon the contract between the parties. Mays v. In re All C-Dive LLC, 2017 U.S. Dist. LEXIS 185874 (E.D. La. Nov. 9, 2017).
Five employees of C-Dive LLC filed a lawsuit after belng injured in a pipeline…
Insurer Has Duty to Indemnify But No Duty to Defend
By Tred R. Eyerly on
The court found that the insurer was obligated to indemnify, but not to defend the insured. Old Republic Ins. Co. v. Kenny Constr. Co., 2017 U.S. Dist. LEXIS 189412 (N.D. Ill. Oct. 31, 2017).
Kenny Construction Company was hired by the Army Corp of Engineers to work on the Chicago…
Production of Pre-Denial Claim File Compelled
By Tred R. Eyerly on
The appellate court found that the claims file that existed before the insurer's denial was discoverable. Cascade Builders Corp. v. Rugar, 2017 N.Y. App. Div. LEXIS 7357 (N.Y. App. Div.. Oct. 19, 2017).
Cascade Builders was the general contractor for the homeowners. In May 2011, Cascade subcontracted with John Rugar…
New Jersey Court Adopts Continuous Trigger for Construction Defect Claims
By Tred R. Eyerly on
The New Jersey Superior Court, Appellate Division, adopted the continuous trigger for establishing which insurers were on the risk for construction defect claims. Air Master & Cooling, Inc. v. Selective Ins. Co. of Am., 2017 N.J. Super. LEXIS 144 (N.J. Super. Ct., App. Div. Oct. 10, 2017).
The insured, Air Master, worked…
Insurer’s Summary Judgment Motion on Business Risk Exclusions Fails
By Tred R. Eyerly on
The insurer unsuccessfully moved for summary judgment on the CGL policy's business risk exclusions. Scottsdale Ins. Co. v. TL Spreader, LLC, (W.D. La. Oct. 20, 2017).
Helena Chemical Company contracted with its customer Wild Farms to sell and apply certain herbicides and pesticides to Wild Farms' 123 acre rice filed.
Insurer Need Not Pay for Rejected Defense When No Reservation of Rights Issued
By Tred R. Eyerly on
The Massachusetts Appeals Court reversed the trial court's order that defense costs be paid for a period during which the insured rejected the defense even though no reservation of rights was issued. OneBeacon Am. Ins. Co. v. Celanese Corp., 2017 Mass. App. LEXIS 140 (Mass. App. Ct. Oct. 16, 2017).
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