Addressing issues left open in its seminal decision in Montrose, the California Supreme Court found that the language in the first-level excess policies meant that the insured could access the policies upon exhaustion of the directly underlying policies purchased for the same policy period. Truck Ins. Exchange v. Kaiser Cement & Gypsum
Stacking Coverage
Hawaii Supreme Court Confirms Insured’s Right to Amend Complaint
By Tred R. Eyerly on
The Hawaii Supreme Court reversed the lower courts' denial of the insured's motion for leave to amend despite its being filed several years after the initial complaint. Carvalho v. AIG Hawaii Ins. Co., 2022 Haw. LEXIS 3 (Haw. Jan. 11, 2022).
Royden Kalavi died in an auto accident on September 23, 2005. The personal…
Hawaii Court of Appeals Confirms Bad Faith Exists Even if No Contractual Duty to Pay Benefits
By Tred R. Eyerly on
The Hawaii Intermediate Court of Appeals reversed the trial court's granting of summary judgment to the insurer on the insured's bad faith claim. Carvalho v. AIG Hawaii Insurance Company, Inc., 2020 Haw. App. LEXIS 382 (Haw. Ct. App. Nov. 16, 2020).
Plaintiff Carvalho's son was killed in a two-car accident.
Hawaii Court Tackles Amount Due Under Stacking Provision for UIM Coverage
By Tred R. Eyerly on
The Hawaii Intermediate Court of Appeals (ICA) ruled in favor of the insurer in deciphering the policy's UIM coverage. Kohatsu v. State Farm Mut. Auto. Ins. Co., 2017 Haw. App. LEXIS 388 (Sept. 29, 2017).
The insureds were in an automobile accident, which resulted in a $300,000 settlement with the…
Stacking of Service Interruption and Contingent Business Interruption Coverages Permitted
By Tred R. Eyerly on
The court found that stacking of interruption coverages was allowed based up the language of the policy. Lion Oil Co. v. Nat'l Union Fire Ins. Co., 2015 U.S. Dist. LEXIS 148261 (W.D. Ark. Nov. 2, 2015).
The insured's oil line was ruptured, causing an interruption of crude oil delivery service. The…
Contractor Covered for Voluntary Remediation Efforts in Completed Homes
By Tred R. Eyerly on
The Texas Supreme Court held that a home builder was covered for the voluntary removal and replacement of a defective insulation product it had installed in hundreds of homes. Lennar Corp. v. Market Am. Ins. Co., 2013 Tex. LEXIS 597 (Tex. Sup. Ct. Aug. 23, 2013).
Lennar built homes using an exterior…
California Court of Appeal Adopts Horizontal Exhaustion Rule
By Tred R. Eyerly on
In a long running suit regarding thousands of asbestos bodily injury claims brought against Kaiser Cement and Gypsum Corporation, the California appellate court held that the excess carrier's indemnity obligation did not attach until all collectible primary policies were exhausted. Kaiser Cement and Gypsum Corp. v. Ins. Co. of the State of Pennsylvania…
California Supreme Court Adopts All-Sums-With-Stacking-Rule Approach to Long-Tail Claims
By Tred R. Eyerly on
In a long awaited decision regarding California's liability for damages caused by the Stringfellow Acid Pits case, the California Supreme Court adopted the "all sums" method of allocating coverage among multiple insurers for long-tail claims. Further, the court concluded that stacking of policy limits was consistent with the CGL policy language. See State v. …
California Court Determines Horizontal Exhaustion Applies, But Underlying Limits Cannot Be Stacked
By Tred R. Eyerly on
The case involved another chapter in the long-standing coverage litigation in which the insured, Kaiser Cement and Gypsum Corporation, sought to enforce indemnity obligations against its insurers for thousands of suits filed because of asbestos exposure. See Kaiser Cement and Gypsum Corp. v. Ins. Co. of the State of Pennsylvania, 2011 Cal. App.
Policy Language Restricts Ongoing Damage to One Occurrence
By Tred R. Eyerly on
Are construction defects that allegedly result in water intrusion and property damage over several policy periods the result of one occurrence or multiple occurrences? This was the issue under consideration in Bayley Constr. v. Am Guar. and Liab. Ins. Co., 2010 U.S. Dist. LEXIS 110767 (W.D. Wash. Oct. 15, 2010).
Bayley Construction…