Reinsurance Law Blog

Reinsurance Law Blog

Tag Archives: cgl

No coverage for theft by a person who was both an employee and not an employee — 7th Circuit, Indiana

Posted in Contractual Liability
In Telamon v. Charter Oak, the Seventh Circuit ruled against coverage for employee theft. Underlying this insurance dispute is a regrettably common tale of greed and dishonesty. Telamon, an Indiana telecommunications firm, engaged Juanita Berry to work for it from 2005 to 2011 as its Vice President of Major Accounts. Berry used that position to… Continue Reading

Construction defect is not an “occurrence” or “accident” that triggers covered “property damage” within the meaning of a CGL policy – 7th Circuit, Illinois

Posted in Contractual Liability, Duty to Defend
In  Allied Prop. & Cas. Ins. Co. v. Metro N. Condo. Ass’n., Allied’s policyholder insured improperly installed windows on Metro’s property. Metro sued the insured for breach of the implied warranty of habitability. Metro and the insured entered into a settlement agreement assigning Metro the right to the insured’s insurance proceeds. Allied sought a declaratory… Continue Reading

Declaratory judgment on coverage premature when underlying liability has not been determined — South Dakota

Posted in Contractual Liability, Duty to Defend
In Western National Mutual Insurance Company v. Gateway, Gateway was involved in building some grain elevators that failed.  Gateway claimed the failure was due in part at least to work of its subcontractor.  Western filed a declaratory judgment action, claiming there was no coverage under the policy because of the “your work” exclusion,  the “professional… Continue Reading

No coverage for contaminated water claim at mobile home park, 8th Circuit, Missouri

Posted in Duty to Defend
In Williams v. Employers Mutual Casualty Co., the issue was insurance coverage for claims for contaminated drinking water at a mobile home park. There was no coverage for the claims because the insurance policies’ pollution exclusions excluded coverage for “‘[b]odily injury’ or ‘property damage’ arising out of the actual, alleged or threatened discharge, dispersal, seepage,… Continue Reading

CGL Policy Excludes Damage to Insured’s Work Product; 8th Circuit, Iowa.

Posted in Contractual Liability, Duty to Defend
In Decker Plastics, Inc. v. W. Bend Mut. Ins. Co., the insurer denied coverage after its insured, Decker, was sued for damages caused by Decker’s defective plastic bags. West Bend argued the defective plastic bags did not constitute an “occurrence” under the policy. Judgment for the insured was proper because “occurrence” includes damages to property other than… Continue Reading

Insurers Must Defend Telemarketing Suits — despite claims of intentional conduct — Second Circuit, NY

Posted in Contractual Liability, Duty to Defend, New Case
In National Fire Insurance Company v. E. Mishan & Sons, Inc., Emson was sued in two class action lawsuits that claimed Emson worked with two other companies to to deceptively trap customers into recurring credit card charges.  The underlying lawsuits asserted that Emson acted as a purveyor of data, facilitating “data passes” and transferring private… Continue Reading

Texas Supreme Court discusses extent of coverage for construction defects under CGL policies

Posted in Contractual Liability, New Case, New Law
In U.S. Metals v. Liberty Mutual, the insured provided flanges to a refinery.  These flanges were welded onto pipes.  When tested by the refinery, they were found to leak, so the refinery replaced them all and sought damages from the insured.  The insured settled with the refinery and sought coverage from its insurer, Liberty Mutual. … Continue Reading

The jury should have been told about coinsurance — Tenth Circuit, Kansas

Posted in Contractual Liability, New Case
In Boardwalk Apartments v. State Auto Property, one of Boardwalk’s eight apartment buildings was destroyed in a fire.  When Boardwalk wasn’t paid enough for the loss, it sued State Auto.  State Auto contended that Boardwalk was underinsured under the policy’s coinsurance provision. Under this provision, Boardwalk’s insurance benefits were reduced if the value of the… Continue Reading

No liability for mold remediation voluntarily assumed by insured, CGL policy, Missouri Law

Posted in Contractual Liability, New Case
In Busch Properties, Inc. v. National Union Fire Insurance, the insured, Busch, was a property manager for a condominium complex. When Busch discovered mold at the property (as a result of the installation of vinyl wallpaper) Busch decided the entire resort / complex needed remediation.  This remediation would also increase the rental values of the… Continue Reading

Occurrence, Faulty Workmanship, Choice of law, Contractual liability exclusion, CGL policy; Oklahoma and Kentucky law

Posted in Duty to Defend, Insurance Bad Faith, New Case
In Kentucky Bluegrass Contracting, LLC v. Cincinnati Insurance Co., 2015 OK CIV APP 100, the trial court erred in finding that Kentucky law applied to the claim — but the error was harmless since the result was the same under either Oklahoma or Kentucky law.  Kentucky Bluegrass Contracting (KBC) did some electrical work at a… Continue Reading

Auto exclusion for loading and unloading applied when Stairmaster fell and injured homeowner — Tenth Circuit, Colorado

Posted in Contractual Liability, Duty to Defend, New Case
In Landmark American v. VO Remarketing, Tibbe purchased a Stairmaster and arranged for its delivery.  Two VO employees were maneuvering the Stairmaster up the stairs to the second-story when they lost control of the machine, causing it to tumble down the stairs. Ms. Tibbe was standing below on the stairway, and was crushed by the… Continue Reading

CGL policy did not cover injuries at birthday party where endorsement not purchased– 10th Circuit, Oklahoma

Posted in Contractual Liability, Duty to Defend, New Case
In Nationwide v. Prater, Prater was severely injured at a birthday party. The birthday party was held at Kingdom Fitness and Fun, a gymnastics/cheerleading business. The application had requested information on birthday parties at the facility for Ancillary Activities and Birthday or Social Party coverage. No information was provided. The district court, on cross-motions for… Continue Reading

Late notice, no prejudice, and ambiguous policy as to who is an insured, CGL policy 8th Circuit, Iowa law

Posted in Contractual Liability, Duty to Defend, New Case
In Michigan Millers Mutual Ins. v. Asoyia, Inc., Asoyia had a Commercial General Liability policy (CGL) with Michigan Millers. Asoyia produces soybean oil. One of Asoyia’s customers, Sunnyside Country Club, had a fire it attributed to Asoyia’s soybean oil, which spontaneously combusted while on rags at Sunnyside’s laundry. Michigan Millers claimed it had no duty… Continue Reading

CGL assault and battery; auto exclusions did not apply to parking lot injury — Missouri law

Posted in Contractual Liability, Duty to Defend, Insurance Bad Faith
In Minden v. Atain Specialty Insurance Co., Lammert struck Daniel with his vehicle as they were both leaving a party at Gannon’s, a bar. Lammert eventually pleaded guilty to involuntary manslaughter. When Gannon’s was sued, its CGL insurer, Atain, refused to defend or participate in settlement negotiations. Atain did not defend or indemnify based upon… Continue Reading

$20M bad faith verdict overturned because of bad jury instructions -Oklahoma

Posted in Contractual Liability, Insurance Bad Faith, New Case
In Aduddell Lincoln Plaza Hotel v. Certain Underwriters at Lloyd’s, 2015 OK CIV APP 34; a judgment of nearly $20 million (for actual damages, bad faith damages, punitive damages, and interest) was reversed because of bad jury instructions. Lloyds offered to pay $50,000 on a $600,000 claim, after deducting for old damage and depreciation. Jury… Continue Reading

Duty to defend copyright, slogan, advertising claims Eighth Circuit, applying Minnesota law

Posted in Contractual Liability, Duty to Defend, New Case
Selective Insurance Company v. Smart Candle, LLC The insured, Smart Candle, sells light-emitting diode (LED) flameless candles and commercial lighting systems internationally. Excell sued Smart Candle under the Lanham Act alleging that, among other things, Smart Candle’s use of the trade name and trademark “Smart Candle” infringed rights that Excell had over use of that… Continue Reading

Duty to defend — intent to injure — defamation — 8th Circuit — Minnesota law

Posted in Contractual Liability, Duty to Defend, New Case
In Sletten & Brettin Orthodontics v. Continental Casualty Company, the insured, (Sletten & Brettin) were sued for intentional defamation regarding an on line review of a competitor. There were several counts, but each count claimed that the insured intended to injure the competitor’s reputation.  The insurance policy excluded coverage for acts done with the intent… Continue Reading

No duty to defend; assault and battery exclusion unambiguous and listed on the declarations page Ark law

Posted in Contractual Liability, Duty to Defend, New Case
In George v. Great Lakes Reinsurance, 2015 Ark App 36, a gunman fired into a crowd at a party room owned by George.  George was sued, and told Great Lakes to defend him.  Great Lakes defended him under a reservation of rights, and filed a declaratory judgment action (dec action) to determine the rights and… Continue Reading

Compulsory Insurance — non auto case 8th Circuit

Posted in Contractual Liability, New Case
Most people are familiar with laws that require drivers to have insurance.  These are called compulsory insurance laws.  But in Northwest Airlines, Inc. v. Westchester Fire Insurance Co., compulsory insurance laws were applied to an on the ground airplane accident at the Las Vegas airport. Northwest used PALS to maintain its planes in Las Vegas. … Continue Reading
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