Reinsurance Law Blog

Reinsurance Law Blog

Tag Archives: summary judgment

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

O.K. to depreciate labor in property loss — Tenth Circuit applying Kansas law

Posted in Contractual Liability
In Graves v. American Family Mutual, Graves had roof damage and damage to her kitchen ceiling after a hailstorm. Her American Family homeowner’s insurance policy provided for recovery of the “actual cash value” at the time of a covered loss as well as the “replacement cost” of the damaged property once repairs are completed. She… Continue Reading

Insurer gets summary judgment for untimely notice – claims made policy — no prejudice required — 8th Circuit Minnesota

Posted in Contractual Liability, Duty to Defend
In Food Market Merchandising, Inc v. Scottsdale Indemnity Company, Food Market was required to pay additional commissions to an employee.  It provided notice to Scottsdale 7 months after the employee sued for his commissions.  The trial court said it was too late, and the Eighth Circuit agreed.  The policy required the policyholder to “give Insurer… Continue Reading

Summary judgment to homeowner insurance company reversed on burst pipe claim — 10th Circuit, Utah

Posted in Contractual Liability, Insurance Bad Faith
In Wheeler v. Allstate Insurance Company, Wheeler insured his cabin with Allstate.  A friend stopped by the cabin in the spring and found a pipe had burst and there was water in the basement.  There was extensive damage.  It was determined that the pipe burst two months before discovery and was likely caused by a… Continue Reading

No bad faith for delay in appraisal where there were coverage issues — 10th Cir Oklahoma

Posted in Insurance Bad Faith
This is the second case involving Hayes Family Trust v. State Farm Fire & Casualty.  The first case, involving the appraisal process, is discussed here.  In this case, the policyholder claimed that State Farm acted in bad faith when it delayed the appraisal process because of coverage issues and when it failed to adequately investigate… 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

Notice / Prejudice rule applied to claims made policy where notice was given within the date certain requirement — Federal Court, Colorado

Posted in Contractual Liability
In Childrens Hospital v. Lexington, Childrens (CHC) was sued for professional negligence.  It failed to provide notice to its insurer, Lexington, “as soon as practicable”, but gave notice within the “date certain” notice requirement of the claims-made policy.  As a result, the court determined it could use the notice prejudice rule to determine if the… 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 Underinsured Motorist Coverage Where Tortfeasor Policy Limits Exceed Insured’s Policy Limits; Missouri (8th Circuit)

Posted in Contractual Liability, New Case
AMCO Ins. Co. v. Williams, arose from a fatal car crash. The insured’s estate sought underinsured (UIM) motorist coverage after recovering the tortfeasor’s policy limits. The claim was denied. The insured sought summary judgment establishing coverage. The insurer claimed there was no coverage because the tortfeasor’s vehicle was not underinsured. The insured said the policy… 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

Questions of reasonableness are for jury, not summary judgment — UM bad faith — Oklahoma law

Posted in Insurance Bad Faith
In Falcone v. Liberty Mutual, Falcone made an uninsured motorist claim (UM claim) for injuries arising out of an auto accident with an uninsured driver.  Falcone was a passenger in her mother’s car, and Liberty was the UM insurer.  Falcone was taken by ambulance to the OU Medical Center Emergency Room, and was then transferred… 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

Recreational land use act applies to Tulsa’s River Parks Authority — Oklahoma

Posted in immunity, New Case
In Sanders v. River Parks Authority, 2016 OK CIV APP 79, Bogdanich died after being struck by a young boy riding a bicycle.  Bogdanich’s survivors sued the River Parks (and others) claiming negligent design of the trails, inadequate warning signs, and insufficient supervision.  The River Parks got summary judgment, though, arguing it was immune from… Continue Reading

Whether the insurer’s investigation of a claim was reasonable was a question of fact precluding summary judgment 10th Circuit, Colorado

Posted in Insurance Bad Faith
In Peden v. State Farm Mutual Auto Ins Co., the Tenth Circuit reversed a summary judgment in favor of State Farm on a uninsured / underinsured motorist claim.  State Farm had both the liability coverage and the UM / UIM coverage.  State Farm paid $240,000 on the liability coverage, and after suit was filed, paid… Continue Reading

Misrepresentation on application voids policy, 8th Circuit, Arkansas

Posted in Contractual Liability
In Nationwide Property and Casualty v. Faircloth, Faircloth applied for auto insurance on line.  When asked for the “primary use” of the vehicle, Faircloth chose Work/School (commute to/from, errands).  After Faircloth had an accident, Nationwide learned that Faircloth used the vehicle for deliveries, putting 1200 miles a week on it.  Nationwide said Faircloth should have… Continue Reading

Third Party Has Standing to Claim Benefits –Missouri

Posted in Contractual Liability
In Blankenship v. Old Missouri Insurance Company, the Missouri Court of Appeals reversed summary judgment for the insurance company, and found that a third party beneficiary had standing to bring a direct action against the insurance company.  The plaintiff was a farm worker, claiming entitlement to medical payments (med pay) coverage and liability coverage under… Continue Reading

Computer fraud provision did not cover payment to fraudulent bank accounts, Fifth Circuit, Texas

Posted in Contractual Liability
In Apache Corp. v. Great American Insurance, the Fifth Circuit vacated summary judgment to the policyholder insured on a computer fraud provision.  Apache was hoodwinked into paying legitimate vendor invoices to criminal bank accounts as a result of scheme initiated by email.  Great American Insurance Company, Apache’s insurer, denied its claim for coverage of its… Continue Reading

UM coverage on vehicle involved in the accident is primary — Arkansas App.

Posted in Contractual Liability, Vehicle
In Southern Farm Bureau Casualty Insurance Co. v. Shelter Mutual Insurance Co., 2016 Ark. App. 563, Roberson was injured while driving a car insured by Shelter.  Roberson had UM coverage through Southern Farm Bureau (Farm Bureau).  Shelter paid Roberson’s claim and argued that either Farm Bureau was liable for the damages under its “other insurance”… Continue Reading
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