Reinsurance Law Blog

Reinsurance Law Blog

Tag Archives: commercial general liability

Mid-Continent off the hook on claim against bankrupt policyholder — 5th Circuit

Posted in Contractual Liability, Duty to Defend
In Kipp Flores Architects v. Mid-Continent Casualty Co.,  Hallmark (Mid-Continent’s policyholder) had a license to build one home per KFA blueprints, but ended up building hundreds, and not paying KFA for its plans.  After KFA sued for copyright infringement, 2 Hallmark entities filed for Chapter 7 bankruptcy, stating there would be no money to distribute… Continue Reading

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

Summary judgment on governmental immunity properly denied where City did not provide proof of no insurance — Arkansas

Posted in immunity
In City of Little Rock v. Yang, Yang sued the City for mishandling a 911 call.  City claimed immunity. But City did not offer evidence it had no insurance.  Governmental immunity is only available under Arkansas law if there is no insurance.  Also, if the claim exceeds the insurance limits, there is immunity.  The denial… Continue Reading

No coverage under builders risk policy for damage to the existing structure — 10th Circuit Colorado

Posted in Contractual Liability, Duty to Defend, Insurance Bad Faith
In Gerald H. Phipps, Inc. v. Travelers Property Casualty, the Tenth Circuit affirmed summary judgment to Travelers Property Casualty on a builders’ risk policy.  The policy covered the builder’s work on the property, not the property itself.  So, when water damaged the property while roof work was being performed by the policyholder, Phipps, there was… 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

Explosion Excluded from Coverage by Pollution Endorsement – 8th Circuit, North Dakota

Posted in Duty to Defend
Hiland Partners GP Holdings, L.L.C. v. Nat. Union Fire Ins. Co. of Pittsburgh, Pa. arose from an insurance coverage dispute over a processing facility condensate explosion. The insurer claimed the explosion was excluded per the policy’s pollutants endorsement. The endorsement defined pollutants as “any solid, liquid, gaseous, or thermal irritant or contaminant” and excluded coverage… Continue Reading

Injury is either within the products completed work hazard or it isn’t — it cannot be both in order to increase limits. Alabama law

Posted in Contractual Liability
In Pharmacists Mutual Insurance Company v. Advanced Specialty Pharmacy, Advanced provided a tainted IV product which caused patient infections.  Pharmacists was Advanced’s insurer, and put $4 million into an interpleader fund to be divided among the claimants.  The claimants and Advanced claimed Pharmacists’ limits were $7 million and the trial court agreed on summary judgment. … Continue Reading

Judgment against policyholder for fraudulent claims affirmed — 10th Circuit, Oklahoma

Posted in Contractual Liability
In Century Surety Co. v. Shayona Investment, Century paid claims submitted by its policyholder, Shayona, and then sued Shayona, arguing the claims were fraudulent.  At trial, the jury found in favor of Century, awarding it both the amount the company paid Shayona under the policy and the sum it spent investigating the claims.  The Tenth… Continue Reading

Appraisal, arbitration, and federal appellate jurisdiction 10th Circuit; Colorado

Posted in Contractual Liability
In KCOM v. Employers Mutual Casualty, KCOM had hail damage to its motel roof.  Employers disputed the amount of the claim. KCOM sought appraisal, and then sued Employers before the appraisal was complete.  When the appraisal was complete, Employers wanted it confirmed by the trial court. When the trial court did not confirm the appraisal,… Continue Reading

Insurance company must defend distributor in pill mill case — 7th Circuit

Posted in Duty to Defend, New Case
In Cincinnati Insurance v. H.D. Smith, the Seventh Circuit reversed a lower court’s ruling finding that Cincinnati had no duty to defend its policyholder, H.D. Smith, a pharmaceutical drug distributor, in a lawsuit filed by West Virginia for damages caused by an “epidemic of prescription drug abuse.” Under the policy, Cincinnati agreed to cover damages… 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

Policyholder knew defense was undertaken under reservation of rights, 8th Cir

Posted in New Case
In National Surety Corporation v. Dustex Corporation, the issue was whether the insurance company properly reserved its rights to deny coverage to its policyholder /  insured, Dustex. The insurance company had reserved its rights as to the declaratory judgment action, but had not specifically reserved its rights as to the arbitration proceeding. The trial court… 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
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