A commentary on insurance coverage issues in Hawaii and beyond
Returning to its prior decisions addressing bad faith, the Texas Supreme Court sought to clarify when damages are available for bad faith despite there being no coverage under the policy. USAA Tex. Lloyds Co. v. Menchaca, 2017 Tex. Lexis 361 (Tex. Sup. Ct. April 7, 2017).
After Hurricane Ike struck Galveston Island in September 2008…
Lawsuits filed for recovery due to the faulty design and installation of doors and windows by homeowners across the country were found to allege multiple occurrences. Pella Corp. v. Liberty Mut. Ins. Co., 2017 U.S. Dist. 53631 (C.D. Iowa March 31, 2017).
The underlying lawsuits alleged that Pella Corporation's windows were defectively designed…
The bankruptcy court found there were multiple occurrences when several victims alleged sexual abuse by various priests within the Diocese. Diocese of Duluth v. Liberty Mut. Group, 2017 Bankr. LEXIS 908 (Bankr. D. Minn. March 30, 2017).
The Diocese filed a petition under chapter 11 as a result of liabilities…
The court determined there was no coverage for 150 underlying lawsuits which alleged that injections for back pain caused bodily injury and death. Westfield Ins. Co. v. Orthopedic & Sports Med. Ctr. of N. Ind., 2017 U.S. Dist. LEXIS 46119 (N. Ind. March 28, 2017).
NECC made preservative-free methylprednisolone acetate (MPA). MPA was an epidural…
Following Pennsylvania law, the Fourth Circuit found one occurrence in a fireworks accident despite allegations of 19 breaches of duty. Hollis v. Lexington Ins. Co., 2017 U.S. App LEXIS 5088 (4th Cir. March 22, 2017).
Kathryn Hollis and her two sons received injuries from a fireworks explosion. The underlying action alleged that the fireworks company…
The Ninth Circuit found that under California law, the excess carrier acted in bad faith by refusing to either approve the underlying settlement or take over the defense. Teleflex Med. Inc., v. Nat'l Union Fire Ins. Co., 2017 U.S. App. LEXIS 4996 (9th Cir. March 21, 2017).
The insured, LMA North America, Inc., distributed…
The Ninth Circuit found that the insurer's negligent failure to respond to a settlement offer did not constitute bad faith. McDaniel v. Gov't Employees Ins. Co., 2017 U.S. App. LEXIS 4029 (9th Cir. March 7, 2017).
McDaniel was the assignee of claims against GEICO assigned by the insured after settling a wrongful death suit. McDaniel…
Assignment of insurance proceeds as part of a settlement against the subcontractor for faulty workmanship was not covered under the CGL policy in accordance with Illinois law. Allied Prop. & Cas. Ins Co v. Metro North Condominium Assoc., 2017 U.S. App. LEXIS 4107 (7th Cir. March 8, 2017).
Metro North Condominium Association hired a…
The West Virginia Supreme Court of Appeals determined that a pre-trial settlement, including a consent judgment against a non-party insurer and an assignment of rights under the policy, was invalid. Penn-America Ins. Co. v. Osborne, 2017 W. Va. LEXIS 119 (W.Va. March 1, 2017).
Beecher Osborne injured his leg in…
The Hawaii Intermediate Court of Appeals (ICA) vacated the circuit court's granting of summary judgment to the insurer after determining there was no duty to defend. National Interstate Ins. Co., Inc. v. Cornelio, 2017 Haw. Ct. App. LEXIS 128 (Haw. Ct. App. March 31, 2017).
Tiare Franco was killed when a truck driven by…
