Eleventh Circuit Upholds Florida’s Strict Interpretation of Eight Corners Rule in Stabbing Case

In Mt. Hawley Ins. Co. v. Roebuck, the liability insurer for the owners of a Florida outdoor shopping mall sought to avoid coverage in connection with a stabbing that occurred at the mall based on the insureds’ failure to comply with conditions precedent to coverage. The Eleventh Circuit, however, in agreement with the district court, found that because the facts extrinsic to complaint that were necessary to establish the conditions’ application were in dispute, the insurer owed a duty to defend.

Mt. Hawley …

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Insurers Be Ready: New Jersey’s Two-Year Window Reviving Time-Barred Sex Abuse Suits is Open

On December 1, 2019, the two-year look-back period created by New Jersey Senate Measure S477 went into effect, reviving claims of sexual abuse that would otherwise be barred under the statute of limitations.

In March 2019, S477 passed in the New Jersey State Senate by a vote of 32 to 1, followed by passage in the New Jersey State Assembly by a vote of 71-0, with five abstentions. The bill was signed into law by New Jersey Gov. Phil Murphy on May 13, 2019.

One …

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10th Circuit Holds that the Phrase “That Particular Part” in a CGL Policy’s “Damage To Property” Exclusion is Ambiguous

Noting the inconsistent treatment given to the “Damage To Property” exclusions commonly found in standard commercial general liability coverage forms, the United States Court of Appeals, Tenth Circuit, applying Oklahoma law, has held that the phrase “that particular part” in the exclusion is ambiguous.

In MTI, Inc. v. Employers Insurance Company of Wausau, No. 17-6206, — F.3d —, 2019 WL 321423 (10 Cir. 2019), an insured contractor, MTI, Inc. (MTI) was retained by Western Farmers Electrical Cooperative (WFEC) to remove and replace anchor bolts …

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New York Appellate Court Permits Use of Extrinsic Facts to “Clarify Ambiguous Pleadings” and Establish the Applicability of a Policy’s Auto Exclusion

On October 23, 2018, our Global Insurance Services group hosted an interactive webinar discussing states’ varying interpretations of what is considered “loading and unloading” in the context of a liability policy’s “Aircraft, Auto or Watercraft” exclusion. During that presentation, we identified inconsistencies in the courts’ application of this provision when assessing an insurer’s duty to defend, particularly in New York. Ironically, that same day, a New York Appellate Court analyzing the application of a the “Aircraft, Auto or Watercraft” exclusion relied on facts extrinsic to …

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New York Court Finds Insured Failed to Establish its Broad Discovery Demands Might Lead to Evidence Relevant to the Application of an Exclusionary Provision in Commercial General Liability Policy

In Northfield Insurance Company v. Golob, an insurer issued a commercial general liability policy to owners of a residential construction project. The policy contained an exclusion titled “Contracted Persons” exclusion, which barred coverage for bodily injury sustained by any person “employed by . . . any organization that . . . [c]ontracted with [the named insured] or with any insured for services” where the injuries “[arose] out of and in the course of employment by that organization.”

As a part of the construction project, …

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New York Appellate Division Split on Claim Preclusion of Bad Faith Action

By decision dated June 8, 2018, the New York State Supreme Court, Appellate Division, Fourth Department, affirmed the trial court’s denial of an insurer’s motion to dismiss bad faith claims based on res judicata, in defiance of prior precedent from a separate Department of the Appellate Division.

Corle v. Allstate Ins. Co., N.Y.S.3d , 2018 WL 2751204 (4th Dept. 2018) arises out of an incident in which the plaintiff, Colin Corle (Corle) was shot by Jeoffrey lee Bauter Teeter (Teeter).  Teeter’s homeowners’ insurer …

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