A commentary on insurance coverage issues in Hawaii and beyond
The magistrate judge denied the insured’s motion to exclude the insurer’s bad faith expert. Southwest Airlines Co. v. Liberty Ins. Underwriters Inc., 2025 U.S. Dist. LEXIS 235109 (N.D. Texas Dec. 2, 2025).
Southwest suffered a computer system failure that disrupted its flight schedule for three days in July 2016 and caused flight cancelations or…
The Fifth Circuit reversed the district court's grant of summary judgment in favor of the insurer on a cyber risk claim. Southwest Airlines Co. v. Liberty Ins. Underwriters, Inc., 2024 U.S. App. LEXIS 996 (5th Cir. Jan. 16, 2024).
Southwest suffered a massive computer failure, which resulted in a three-day…
The Fifth Circuit Court of Appeals reversed the district court's finding that Southwest had no coverage for a cyber claim. Southwest Airlines Co. v. Liberty Ins, Underwriters, Inc., 2024 U.S. App. LEXIS 996 (5th Cir. Jan. 16, 2024).
On July 20, 2016, Southwest suffered a massive computer failure, which resulted…
The insured hospital's claim against its broker for allowing a policy to lapse was dismissed on ripeness grounds. WakeMed v. Willis Towers Watson Southeast, Inc., 2023 U.S. Dist. LEXIS 139115 (W.D. N.C. Aug. 9, 2023).
WakeMed was a hospital system providing health services. WakeMed hired Willis Towers Watson Southeast Inc.
The insurers' motion for judgment on the pleadings was successful, in part, for failing to properly name one insurer. Landings Yacht, Golf and Tennis Club, Inc. v. Swiss Re Corp. Solutions America, 2022 U.S. Dist. LEXIS 210815 (M.D. Fla. Nov. 21, 2022).
In 2019, two insurers, Peleus Insurance Company…
The court found there was no coverage for the insured's transmission to a foreign account held by someone who gained unauthorized access to the account. Construction Fin. Admin. Services, LLC v. Fed Ins. Co., 2022 U.S. Distl LEXIS 103042 (E.D. Pa. June 9, 2022).
The insured, Construction Financial Administration Services…
The appellate court found that cross-motions for summary judgment filed by the insured and insurer for a claim arising from computer fraud were properly denied. G&G Oil Co. of Ind. v. Cont'l W. Ins. Co., 2021 Ind. LEXIS 182 (Ind. March 18, 2021).
G&G Oil discovered one morning it was…
The Fifth Circuit upheld the district court's denial of coverage under the policy's Computer Transfer Fraud provision. Mississippi Silicon Holdings, L.L.C. v. Axis Ins. Co., 2021 U.S. App. LEXIS 3112 (5th Cir. Feb. 4, 2021).
Mississippi Silicon Holdings' (MSH) chief Financial Officer, John Lalley, received an email from a regular…
The court found there was no coverage for the property management company after a fraudster sent a false email with wiring instructions, causing a loss of $200,000. Ernst & Haas Mgmt. Co. v. Hiscox, Inc., 2020 U.S. Dist. LEXIS 218379 (C.D. Calif. Nov. 5, 2020).
Ernst & Haas (E&H) employee…
The Eleventh Circuit agreed that a sophisticated phishing scheme that persuaded an employee to wire money to a foreign bank account was a direct physical loss covered under a commercial crime policy. Principle Solutions Group, LLC v. Ironshore Indemn., Inc.,2019 U.S. App. LEXIS 36350 (11th Cir. Dec, 9, 2019).
At…
