Following its order dated February 10, 2025, the Hawaii Supreme Court issued its full opinion, explaining its answers to the reserved questions addressed in the order. In the Matter of the Petition for the Coordination of Maui Fire Cases, Haw Sup. Ct., SCRQ-24-0000602 (March 17, 2025) [Prior post on order here].
reimbursement
Sixth Circuit Predicts Michigan Allows Reimbursement of Defense Costs to Insurer
By Tred R. Eyerly on
The Sixth Circuit affirmed the district court in finding that the insurer who reserved rights was entitled to reimbursement for uncovered claims. Great Am. Fid. Ins. Co. v. Stout Rises Ross, Inc., 2024 U.S App, LEXIS 8576 (6th Cir. April 8, 2024).
Stout Rises Ross, Inc. was sued in two…
Ninth Circuit Finds Insurer Cannot Impose Joint and Several Liability in Seeking Reimbursement
By Tred R. Eyerly on
Applying California law, the Ninth Circuit determined that the insurer could not seek reimbursement from an insured based upon joint and several liability. United Specialty Ins. Co. v. Banihashemi, 2023 U.S. App. LEXIS 5546 (9th Cir. March 8, 2023).
The insured appealed the district court's summary judgment order holding him…
California Statute Barring Defense Obligations for Alleged Consumer Protection Violation Upheld
By Tred R. Eyerly on
The Ninth Circuit found that a California statute excluding coverage for alleged violation of consumer protection laws did not violate due process. Adir Int'l, LLC v. Starr Indem. & Liability Co., 2021 U.S. App,. LEXIS 10756 (9th Cir. April 15, 2021).
Adir operated a retail chain called Curacao. In 2017…
New York Court Finds Insurers Cannot Recover Defense Costs Where No Duty to Indemnify
By Tred R. Eyerly on
In a case of first impression, the Supreme Court of New York, Appellate Division, found the insurer had no right to reimbursement of defense costs paid to defend the insured. Am. W. Home Ins. Co. v. Gjoaj Realty & Mgt. Co., 2020 N.Y. App. Div. LEXIS 8286 (N.Y. App. Div. Dec. 30…
Insurer Entitled to Reimbursement of Defense Costs Under Unjust Enrichment Theory
By Tred R. Eyerly on
The federal district court for the district of Hawaii determined that the insurer could recover defense costs from an additional insured consistent with its Reservation of Rights letter under an unjust enrichment theory. Giga, Inc. v. Kiewit Infrastructure W. Co., 2020 U.S. Dist. LEXIS 10151 (D. Haw. Jan. 22, 2020).
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No Coverage for Use of Funny Money Under Crime Policy
By Tred R. Eyerly on
The Federal District Court predicted that Nevada courts would not find coverage under a commercial crime policy for the insured's use of funny money. CP Food & Bev. v. United States Fire Ins. Co., 2018 U.S. Dist. LEXIS 133331 (D. Nev. Aug. 6, 2018).
The insured, CP Food & Beverage…