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Insurance Law Hawaii

A commentary on insurance coverage issues in Hawaii and beyond

Topics

Actual Cash Value

Insurer's Late Notice Argument Fails Due to Lack of PrejudiceBad Faith Claim Dismissed as Insurer's Actions Found Reasonable

Additional Insured

Contractor Entitled to Defense Under Subcontractor's PolicyAdditional Insureds Owed a Defense in Underlying Personal Injury Suit

Administrative

ABA's ICLC Insurance ConferenceBack to Tucson for Insurance Coverage Litigation Committee's Annual Seminar

Advertising Injury

Contrasting Expert Opinions Result in Denial of Cross Motions for Summary JudgmentNo Entitlement to Reimbursement of Pre-Tender Fees

Aggregates

Dispute Over Policy's Aggregate Limit AddressedFaulty Workmanship Claims Amount to Multiple Occurrences

All-Risk Policy

Inadequate Coverage for Lease Building Becomes Apparent After LossPortion of COVID-19 Claim Resurrected on Appeal

Allocation

Primary D&O Policy Must Defend Despite Other Insurance ProvisionCalifornia Supreme Court Adopts Vertical Exhaustion for Long-Tail Claims

Appraisal

Appraisal Award Upheld Despite Insurer's Contention that Causation was ConsideredCourt Compels Appraisal Although Coverage Issues Exist

Assignment

Workers' Compensation Exclusion Bars CoverageAssignment of Claim not Precluded by Policy's Anti-Assignment Clause

Attorneys' Fees

Insurer's Motion in Limine Granted in Part, Denied in PartInsurer's Declaratory Relief Action on Duty to Indemnify Dismissed

Automobile

Broker's Liability for Inadequate Coverage Raises Issues of FactHawaii Intermediate Court of Appeals Reverses Lower Court's Dismissal of Insureds' Claims Arising from Work-Related Death

Aviation Insurance

Insured's Failure to Comply with Pilot's Warranty Negates Aviation Coverage

Bad Faith

COVID-19 Claim for Business Interruption Dismissed with Leave to Amend ComplaintAppraisal Award Upheld Despite Insurer's Contention that Causation was Considered

Broker's Negligence

Dismissal of Negligence Claim against Broker ReversedForfeited LLC Has No Claim Against Broker Allowing Policy to Lapse

Burlington

Hawaii Court Finds No Bad Faith, But Negligent Misrepresentation Claim Survives Summary Judgment in Construction Defect ActionJudge Kobayashi Determines No Coverage for Construction Defect Claim

Business Interruption

Soot Constitutes Property DamageCOVID-19 Claim for Business Interruption Dismissed with Leave to Amend Complaint

Business Risk Exclusions

Insurer Must Defend Portions of Claim Arising from Alleged Faulty WorkmanshipBusiness Risk Exclusion Dooms Coverage for Construction Defect Claim

Chinese Drywall

Is There Direct Physical Loss Under A Property Policy When Cornavirus is Present?No Coverage For Damage Caused by Chinese Drywall

Choice of Law

South Carolina District Court Finds No Duty to Defend Under Hawaii LawNew York Court Denies Injunction to Prevent Out-of-State Suit

Claims Made Policies

Harvard's Claim Rejected for Untimely NoticeSEC Inquiries Not an Administrative Proceeding or Covered Claim

Collapse

Collapse Claim Dismissed as UntimelyInsurers' Motion for Summary Judgment on Collapse Claim Granted in Part, Denied in Part

Comprehensive General Liability

Subcontrator's Insurer Must Reimburse for Defense of ContractorPlaintiff in Underlying Suit is not a Required Party in Dispute Between Insurers on Duty to Defend

Construction Defects

Insured Successfully Moves to Dismiss Insurer's Suit to Eliminate Duty to DefendColorado Supreme Court Finds Economic Loss Rule Applies to Allegations of Willful and Wanton Conduct

Contract Exclusion

Endorsements Preclude Coverage for Alleged Faulty WorkmanshipInsurer Must Defend Despite Exclusion for Claims Arising Out of Contract

COVID-19

Soot Constitutes Property DamageCOVID-19 Claim for Business Interruption Dismissed with Leave to Amend Complaint

Cyber Risk

Insurer's Motion to Dismiss Cyber Claim DeniedInsured's Claims against Insurer under Cyber Policy Survive Motion to Dismiss

Designated Premises Endorsement

ISO Proposes New Designated Premises Endosement in Response to Hawaii Decision

Director's and Officer's Insurance

Primary D&O Policy Must Defend Despite Other Insurance ProvisionDelaware Court Determines Coverage Under Directors and Officers Policy

Discovery

Insurer's Motion to Dismiss Claim of Purported Additional Insureds is GrantedInsurer's Motion to Compel Insured's Tax Returns Partly Successful

Duty to Cooperate

Denial of Claim Based Upon Dispute over EUO OverturnedPolicy Does Not Commit Insurer to Provide Supersedeas Bond

Duty to Defend

Workers' Compensation Exclusion Bars CoverageContractor Entitled to Defense Under Subcontractor's Policy

Duty to Indemnify

Workers' Compensation Exclusion Bars CoverageAdditional Insureds Owed a Defense in Underlying Personal Injury Suit

Ensuing Loss

Resulting Loss Claims DeniedAbsent Separate Covered Peril, Ensuing Loss is Not Applicable

ERISA

Sixth Circuit Predicts Michigan Allows Reimbursement of Defense Costs to InsurerLife Insurance Claim Against Employer Prevails In Ninth Circuit Review

Errors and Omissions

Finding Insurer's Declaratory Relief Action Raises Unsettled Questions of State Law, Case is DismissedHawaii Appellate Court Finds Agent May Be Liable for Failing to Submit Claim

Excess Coverage

Insured's COVID-19 Claim Survives Insurers' Motion for Summary Judgment under Some PoliciesCourt Addresses Insurers' Dispute Over Which is Primary, Which is Excess

Expert Witnesses

Federal Court Certifies Class Challenging State Farm's Depreciation of Sales Tax When Calculating ACVMotion to Strike Insureds' Experts Denied, Unfair Claim Settlement Claims Survive Summary Judgment

First Party Insurance

Insurer's Motion to Dismiss Cyber Claim DeniedSoot Constitutes Property Damage

Flood Coverage

Insureds' Claim for Flood Damage is Time-BarredFailure to Strictly Adhere to Limitations for Flood Claim Leads to Denial

Flood Policy

Insureds' Claim for Flood Damage is Time-BarredFailure to Strictly Adhere to Limitations for Flood Claim Leads to Denial

Gulf Oil Spill

Liability Cap Does Not Exclude Defense Costs for Loss Related to Deep Water HorizonContractual Indemnity is Not Form of Other Insurance

Hail Damage

Exclusion Bars Coverage For Cosmetic Hail Damage to RoofInsurer's Late Notice Argument Fails Due to Lack of Prejudice

Health Insurance

Bad Faith, Emotional Distress Claims Reinstated Against Health InsurerHawaii Insurer Successfully Dismisses California Suit for Lack of Personal Jurisdiction

Hurricane

Insurer Granted Summary Judgment, in Part, After Partial Payment of ClaimInsurer's Motion to Compel Insured's Tax Returns Partly Successful

Hurricane Harvey

Recommendation to Deny Agent's Motion for Summary Judgment on Fraudulent MisrepresentationFifth Circuit Reverses Summary Judgment Award to Insurer on Hurricane Damage Claim

Hurricane Ike

Insurer's In-House Expert's Communications Are PrivilegedTexas Supreme Court Clarifies When Insured Entitled to Bad Faith Damages Despite No Coverage

Infringment

Duty to Defend Arises from Allegations of "Advertising Injury"Ninth Circuit Finds No Coverage for Infringment Claim

Katrina

No Coverage for Hurricane Sandy DamageState Farm Unsuccessful In Seeking Dismissal of Qui Tam Case

LHWCA

Fourth Circuit Adopts Strict Interpretation of Time Frame in Which to Apply for BeneftsEmotional Distress Claim Viable Despite Exclusive Remedy Provision of Workers' Compensation Act

Maritime Insurance

Boat Owner Survives Insurer's Motion to DismissNo Coverage for Recovery of Untapped Oil Barrels From Harbor

Misrepresentation

Negligence Claims against Insurance Agent FailAlleged Negligent Misrepresentation on Condition of Home is Not an Occurrence Causing Property Damage

Mold

Resulting Loss Claims DeniedFifth Circuit Affirms District Court's Grant of Summary Judgment to Insurer on Property Loss Claim

Notice

Class Certification for Challenging Life Insurer's Termination of Policies OverturnedInsurer's Refusal to Consider Supplemental Claim Found Improper

Occurrence

Court Determines Several Occurrences for COVID-19 Coverage Under EndorsementContractor Entitled to Defense in Suit Filed by Performance Bond Carrier

Other Insurance

Court Resolves Carriers' Dispute Over Which Must DefendCalifornia Supreme Court Finds Vertical Exhaustion Applies to First-Level Excess Policies

Pollution Exclusion

Alaska Supreme Court Finds Carbon Monoxide is Not a Pollutant Excluding CoverageHawaii Supreme Court Reaffirms an "Accident" Includes Reckless Conduct, Finds Green House Gases are Pollutants

Pollution Liability Policy

Court Finds Duty To Defend Environmental Claim, But Defense Limited to $100,000Agent Not Responsible for Insured's Lack of Coverage

Public Adjuster

Insured's Breach of Contract Claim Survives Motion to Dismiss, but Bad Faith Claim Does NotAllegations in Insured's Complaint Sufficient to Survive Motion to Dismiss

Punitive Damages

Deceptive Practices, Punitive Damage Claims Dismissed in Property Damage SuitCoverage, Bad Faith Upheld In Construction Defect Case

Removal

Finding Insurer's Declaratory Relief Action Raises Unsettled Questions of State Law, Case is DismissedHawaii Federal District Court Remands COVID-19 Business Interruption Case to State Court

Self Insured Retention

Deductibles Limited to Number of Suits Filed Against Insured, Not Number of Actual PlaintiffsExcess Policy Triggered Once Retention Paid, Even if Loss Not Covered By Excess

Stacking Coverage

California Supreme Court Finds Vertical Exhaustion Applies to First-Level Excess PoliciesHawaii Supreme Court Confirms Insured's Right to Amend Complaint

Subrogation

Colorado Supreme Court Finds Economic Loss Rule Applies to Allegations of Willful and Wanton ConductInsureds Prevail on Summary Judgment Addressing Responsibility for Water Leak

Title Insurance

Hawaii Federal District Court Denies Title Insurer's Motion for Summary JudgmentTitle Insurer Breaches Duty to Defend in Bad Faith

Trigger of Coverage

West Virginia Adopts Continuous-trigger Theory for Occurrence Based PoliciesWest Virginia Supreme Court Receives Certified Question on Trigger of Coverage

UIM/UM Coverage

Hawaii Supreme Court Confirms Insured's Right to Amend ComplaintDenial of Bad Faith Claims Reversed and Remanded

Umbrella

Alleged Negligent Misrepresentation on Condition of Home is Not an Occurrence Causing Property DamageReinsurer's Obligation to Provide Coverage Determined Under English Law

Uncategorized

Workers' Compensation Exclusion Bars CoverageSoot Constitutes Property Damage

Volcanic Eruption

Hawaii Federal District Court Grants Preliminary Approval of Settlement on Volcano DamageRequest for Stay Denied in Dispute Over Coverage for Volcano Damage

Workers Compensation

Workers' Compensation Exclusion Bars CoverageHawaii Intermediate Court of Appeals Reverses Lower Court's Dismissal of Insureds' Claims Arising from Work-Related Death
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Damon Key Leong Kupchak Hastert
1003 Bishop Street, Suite 1600
Pauahi Tower
Honolulu, HI 96813
Phone: 808-531-8031
Website: https://hawaiilawyer.com/
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Over Sixty Years of Service to our Community. Our firm traces its roots back to 1963 when Frank Damon and Henry Shigekane founded a unique law firm. The ethnic and cultural mix inherent in our firm’s origin has continued as we have grown and is reflected by our ability to offer clients services in such languages as Japanese, Mandarin, Vietnamese, and French, in addition to English. For historical background and our founders, click here.

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