9/8/21
By: Nicholas J. Hubner In Blue Devil LLC v. Ace Prop. & Cas. Ins. Co., No. 1:20-cv-12480, 2021 U.S. Dist. LEXIS 166886, (D.N.J. Sep. 2, 2021), plaintiffs, comprised of seven related LLCs, brought seven breach of contract claims (one for each LLC policyholder), seven declaratory judgment claims, and a claim for regulatory estoppel, all related…
New York “bad faith” bill seeks to expand recovery for insureds and third parties
9/2/21
By: Christopher Donnelly In 2020, the New York State Assembly and Senate each proposed bills which sought to expand a policyholder’s ability to seek recovery from its insurer via claims for unfair settlement practices or “bad faith” claims. The proposed bills, A5623B and S06216A provided “that plaintiff may recover interest, costs and disbursements; compensatory damages, consequential damages and reasonable…
After the fact wishes are not enough to change before the fact choices
8/31/21
By: Matt Boyer The Eleventh Circuit declines to find that a policy’s coverage is illusory simply because the policy does not cover the damages the insured wants it to cover On August 26, 2021, the Eleventh Circuit Court of Appeals published its opinion in The Travelers Indemnity Company of Connecticut v. Richard McKenzie & Son, Inc., Hermanns Real…
8/16/21
By: William H. Buechner, Jr. The Eighth Circuit recently issued the first federal appellate decision regarding a claim asserting business interruption coverage because of COVID-19. In Oral Surgeons, P.C. v. The Cincinnati Ins. Co., 2021 U.S. App. LEXIS 19775 (8th Cir. July 2, 2021), the insured offered oral and maxillofacial surgery at four offices in the…
No liability for property owners under Georgia’s Gang Act
8/12/21
By: Rachael Slimmon On June 21, 2021, the Georgia Supreme Court addressed whether a property owner can be held liable for damages arising from a nuisance claim under the Georgia Street Gang Terrorism and Prevention Act. Star Residential, LLC et al. v. Hernandez resolved an issue based on a statute seemingly written to penalize gang members…
Update: Does what happens in mediation stay in mediation?
7/12/21
By: Barry Miller Last August, FMG reported on Mosely v. Arch Specialty Fire Insurance, a case from the Court of Appeals of Kentucky that said courts cannot use an insurer’s conduct at mediation as evidence in a subsequent bad faith case. The Supreme Court of Kentucky has affirmed that result, but only after stating a…
During Hurricane Season, Rains Come Down and Claims Handling Ramps Up
7/6/21
By: Justin Boron With the dog days of summer here and Hurricane Elsa bearing down on parts of the Gulf Coast, it’s worth a reminder that hurricanes precipitate—in addition to other weather phenomena—insurance claims. The claims handling insurance laws as well as court systems along the Gulf Coast are some of the most sensitive to…
5/27/21
By: Richard Smith If I go there may be trouble, but if I stay it will be double… These lyrics from the 80’s song by The Clash does a fairly nice job describing the dilemma that an insurance defense lawyer faces while the carrier that hired him to defend its insured reserves its own coverage…
5/24/21
By: Phil Savrin The Supreme Court of Georgia has dealt a severe blow to an insurance company’s ability to require advance notice of a lawsuit against its insured before being exposed to extra-contractual liability for the full amount of the judgment that may be returned. In GEICO Indemnity Company v. Whiteside, Bonnie Winslett was using…
It May Be Legal, But It’s Not Civil
4/13/21
By: Michael Weinberg A recent decision in the matter of Legal Sea Foods, LLC v. Strathmore Insurance Company, USDC (Mass) further addressed coverage for business income and extra expense losses caused by both state and local governments nationwide orders (the “Orders”) in response to the Covid 19 pandemic. Legal Seafoods is a chain which operates 32 restaurants…
4/8/21
By: Kevin G. Kenneally, Esq. and William E. Gildea, Esq. The embattled NY Governor Andrew Cuomo backtracked on his signature pandemic legislation that recently unraveled and marred his reputation, as allegations of cronyism and endangering the state’s most vulnerable elderly population were widely reported. This repeal follows disclosure of investigations into the Cuomo administration’s directive…
Texas’ Perfect Storm May Result In Largest Insured Loss In Texas History
4/8/21
By: Ken Coronel Texas residents are still recovering from the extreme winter storm which left the state reeling from days of widespread blackouts, water shortages, millions left in the dark, and business closures. From the standpoint of the carriers writing in the state, the second-largest property insurance market among U.S. states, this was the “perfect…