Reinsurance Law Blog

Reinsurance Law Blog

Tag Archives: duty to defend

No claim of bad faith or breach of contract against rental car company where insurance was declined — Missouri

Posted in Contractual Liability, Duty to Defend, Insurance Bad Faith
In Clayborne v. Enterprise, Parker rented a car from Enterprise.  Parker declined insurance coverage and supplemental insurance when he rented the car.  Then he was in an accident and hit Clayborne.  Enterprise declined to defend the subsequent suit which Parker claimed was bad faith.  But summary judgment to Enterprise was affirmed.  Enterprise and ELCO (Enterprise’s… Continue Reading

Breach of notification provision, failure to give insurance company prompt notice voids coverage — 8th Circuit, Arkansas

Posted in Contractual Liability
In American Railcar Industries v. Hartford Insurance Company, Tedder, American Railcar’s employee, was hurt while on a break at work.  Tedder sought workers compensation coverage for the claim, which was eventually denied by the Arkansas Workers’ Compensation Commission.  Then, Tedder filed a civil tort action against American Railcar (ARI) in federal court. ARI did not… Continue Reading

Homeowners policy did not cover privacy, negligence claims where there was no physical injury to person or property — 10th Circuit, Oklahoma law

Posted in Contractual Liability, Duty to Defend
In State Farm Fire v. Dawson, Dawson was sued for negligence and privacy violations after receiving inappropriate photos of an under aged student. Dawson wanted State Farm to pay his defense and any judgment.  But State Farm claimed there was no physical injury to tangible property and no bodily injury such that the policy did… Continue Reading

Insurer equitably estopped from denying coverage based on change of position on interrelated acts — 10th Circuit — NY law

Posted in Contractual Liability, Duty to Defend
In Brecek & Young Advisors v. Lloyds London, BYA told Lloyds about some claims (Wahl Arbitration) that fell within the 2006-2007 policy issued by Lloyds to BYA.  Lloyds first claimed that the Wahl Arbitration was related to another claim under a previous policy issued by Fireman’s Fund. Under the policy,“Interrelated Wrongful Acts” are “considered a… Continue Reading

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

E and O insurer had no duty to defend Realtor in claims arising after the sale — 7th Circuit, Illinois

Posted in Duty to Defend
In Madison Mutual Insurance Co v. Diamond State Insurance Co., the policyholder, Favre was sued by her neighbors, the Dribbens for harassment, intimidation and interference with their rights.  The Dribbens had purchased their property through Favre, a realtor, and had sued when they discovered the lake on the development had not been properly permitted.  After… 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 occurring during rodeo event subject to athletic participation exclusion — MD Fla.

Posted in Duty to Defend
In Volusia County Cattlemen’s Association v. Western World Insurance Company; Case No: 6:15-cv-1239 (MD Fla), Desiree Cicero was participating in a cash grab event at the Cattlemen’s rodeo.  The event involved grabbing cash off of bulls running around in the arena.  Cicero was hurt and sued the Association.  The Association sought a defense and coverage… Continue Reading

TCPA exclusion applies to non-TCPA claims, such as conversion — ED Missouri, applying Illinois law

Posted in Duty to Defend
In Regent Insurance Co. v. Integrated Pain Management, 4:14-CV-1759 RLW, 2016 WL 5357408 (E.D. Mo. Sept. 23, 2016) the policyholder was sued for sending unsolicited faxes in violation of the TCPA — Telephone Consumer Protection Act. In addition to the statutory damages, the complaint said that by sending the faxes, the policyholder converted the plaintiffs’… Continue Reading

No coverage for accident where policy lapsed before accident and a new policy was issued after the accident — ED Ark

Posted in Contractual Liability
In United Fin. Cas. Co. v. Pearson, 4:15-CV-00192-KGB, 2016 WL 5079249 (E.D. Ark. Sept. 16, 2016), the insured, Pearson, failed to pay his premiums, and the insurance was cancelled effective March 25.  The insured sought to reinstate the policy on June 2, after an accident.  But the insurance company would not reinstate the policy, and… Continue Reading

Claim file discoverable on issue of duty to defend — WD Okla applying Illinois law

Posted in Contractual Liability, Duty to Defend, Insurance Bad Faith
In Federal Insurance Company v. Indeck Power Equipment Company, CIV-15-491-D, 2016 WL 5173402 (W.D. Okla. Sept. 21, 2016) the trial court granted a motion to compel discovery of a claim file.  The case had been bifurcated for discovery between duty to defend and bad faith. According to Federal, information regarding the claim file relates to… Continue Reading

Shooting not covered by homeowners, umbrella or business policies E.D. Ark

Posted in Contractual Liability, Duty to Defend, New Case
In Travelers v. Wilson, 2016 WL 5334666, Wilson was insured under a homeowner’s policy, an umbrella policy, and a business policy.  But none of these policies provided coverage to Wilson when he shot Metcalf in the parking lot of his (Wilson’s) liquor store.  Wilson was convicted of 2nd Degree murder for the shooting.  Second degree… Continue Reading

New Issue of Coverage Opinions out

Posted in Contractual Liability, Duty to Defend, Insurance Bad Faith
There is a new issue of Coverage Opinions out.  The newsletter discusses, inter alia: Update From The Reporters On The ALI Restatement Of Liability Insurance A Monster: Insurer Sasquashed: #1 Coverage Case Of 2016 ABSOLUTE MUST READ: Bad Faith: Turning $30K into $3M (And Easily Preventable) Consequences For Breach Of The Duty To Defend This… 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

Lack of Physical, Practical Means to Access Property Does Not Render Title Unmarketable; 10th Circuit, Colorado

Posted in Contractual Liability, Insurance Bad Faith
In Fidelity Nat. Title Ins. Co. v. Woody Creek Ventures, L.L.C., an insured sued its title insurance company claiming the title was unmarketable because the insured lacked a permanent right of access between parcels. The insured claimed the thirty-year revocable right of way provided by the insurer to access the second parcel was insufficient. Judgment… 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

Failure to notify insurer of lawsuit filed after the application but before the policy issued results in rescission 8th Circuit, Iowa, Arkansas

Posted in Contractual Liability, New Case
In Capson Physicians Insurance Co v. MMIC Insurance Inc., Dr. Hasik changed his private medical practice from Arkansas to work in a hospital in Iowa. He got new professional liability insurance from Capson.  In addition, the hospital sought coverage for Dr. Hasik through its insurer, MMIC.  Most professional liability insurance is written on a claims… Continue Reading

No E & O coverage for suit where named insured was not named defendant (specific entity exclusion) (10th Cir. Colorado)

Posted in Contractual Liability, New Case
In P&S LLC v. National Union Fire Insurance Company, P&S sued Private Escapes, a luxury-travel company, and its CEO, Keith.  P&S had signed up with Private Escapes after being told by Keith its deal would be grandfathered in after a planned merger between Private Escapes and Ultimate Resorts.  When the resulting company, Ultimate Escapes, refused… Continue Reading

Breach of cooperation clause precludes coverage — Arkansas Court of Appeals

Posted in Contractual Liability, Duty to Defend, New Case
In Spore v. Geico, 2016 Ark. App. 306, Spore was injured in a car accident with Adrian, who was driving a car insured by Geico, through a policy issued to Lolita Ford. Lolita Ford ignored all of Geico’s requests for information about the accident, and Geico filed a declaratory judgment action claiming Lolita Ford’s breach… Continue Reading

Reinsurance arbitration clause invalidated; Missouri law

Posted in Contractual Liability, Duty to Defend, Insurance Bad Faith, New Law
In Leonberger v. Missouri United School Insurance Council, a bus driver accidentally killed a student after he left the bus.  There was a lawsuit, and the criminal acts exclusion was raised after the driver pled guilty to the charge of second-degree involuntary manslaughter. After the student’s parents got an $11.5M judgment, the driver sued the… Continue Reading