Patrick Omilian

All articles by Patrick Omilian

 

Indiana Supreme Court Finds Insured Afforded Coverage For “Professional Services”

In Wellpoint, Inc. v. National Union Fire Insurance Company of Pittsburgh, PA, No. 49S05-1404-PL-244 (Ind. Apr. 22, 2015) the Indiana Supreme Court reversed the trial court and granted summary judgment for Anthem, Inc.against numerous reinsurers (Excess Reinsurers), finding that Anthem was afforded coverage in the underlying litigation under the reinsurance policies. Anthem, a large managed health care organization, was self-insured for E&O liability. It purchased policies from other insurers to reinsure its E&O liabilities. The underlying litigation consisted of several
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If It Looks Like An Intentional Act And Sounds Like An Intentional Act, Then It Is An Intentional Act

Allstate Insurance Co. v. Tandon, 2015 WL 1395925 (D. Conn. Mar. 25, 2015), involved homeowners and personal umbrella policies issued to the policyholders, Sapna Tandon and Robert Doohan. The policies provided coverage for damages arising from an “occurrence.” In May 2010, the policyholders were involved in an altercation with Frank and Donna Genna. The Gennas brought suit against the policyholders, in addition to twelve other defendants, for injuries allegedly sustained in the altercation. The Gennas collectively asserted ten causes of
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Fourth Circuit Finds “Pill Mill” Action Alleges “Occurrence”

In Liberty Mutual Fire Insurance Co. v. J.M. Smith Corp., 2015 U.S. App. LEXIS 3989 (4th Cir. Mar. 13, 2015), the U.S. Court of Appeals for the Fourth Circuit affirmed that Liberty Mutual was required to defend J.M. Smith Corporation, a wholesale pharmaceutical distributor sued for failing to implement sufficient controls over the distribution of prescription drugs, contributing to a well-publicized prescription drug abuse epidemic in West Virginia caused by excessive prescription drug orders. The Attorney General of West Virginia
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How Is a Dress Trade Dress? California Federal District Court Deems Clothing Design Infringement Suit as Alleging Trade Dress Infringement

In West Trend, Inc. v. AMCO Insurance Co., No. CV 14-06872-RGK (PLAx), 2015 U.S. Dist. LEXIS 6807 (C.D. Cal. Jan. 9, 2015), the Central District of California granted summary judgment in favor of West Trend, Inc. (“West Trend”) against AMCO Insurance Company (“AMCO”), finding that AMCO had a duty to defend West Trend against a lawsuit filed by Spirit Clothing Company (“Spirit”). The underlying lawsuit involved a long sleeve shirt marketed and sold by West Trend that contained stitching allegedly
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Indiana Supreme Court Addresses Monetary Threshold for Secondary Liability in Workers Compensation Case

In Young v. Hood’s Gardens, Inc. 2015 Ind. LEXIS 46 (Jan. 22, 2015), the Indiana Supreme Court reversed a lower court ruling granting summary judgment to a business owner who had sought a declaration that it was not required to pay workers compensation benefits to the employee of a contractor it had hired for certain tree removal services. Hood’s Gardens, Inc., contracted with Discount Tree Extraction to remove a tree at Hood’s place of business.  Discount orally quoted a price of
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Compulsory Insurance Doctrine Negates Insurer’s Late Notice and Cooperation Defenses, 8th Circuit Says

In Northwest Airlines, Inc. v. Professional Aircraft Line Service, No. 13-1754, 2015 U.S. App. LEXIS 546 (8th Cir. Jan. 14, 2015), the Eighth Circuit rejected an insurer’s attempt to deny coverage based on late notice and failure to cooperate defenses because the insured was required by county ordinance to maintain insurance. Westchester Fire Insurance Company insured Professional Aircraft Line Service (PALS) under a hangarkeepers liability insurance policy. PALS entered into a contract with Northwest Airlines to service and maintain Northwest’s
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Ninth Circuit Finds No Implied Disparagement Coverage in First Case Decided After Swift Distribution

The Ninth Circuit affirmed the dismissal of Bullpen Distribution’s (Bullpen) suit against Sentinel Insurance Company (Sentinel) for breach of insurance contract, bad faith failure to defend, and declaratory relief.  Bullpen Distribution, Inc. v. Sentinel Ins. Co., No. 12-16369, 2014 U.S. App. LEXIS 17497 (9th Cir. Sept. 10, 2014).  The coverage dispute derives from allegations by A.Y. International, Inc (AYI) that Bullpen sought to take credit for AYI’s business practices and achievements and pass of AYI’s achievements, business relationships and practices,
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“Other Insurance” Language Irrelevant to Priority of Coverage Where Excess Policy’s Coverage Has Not Been Triggered

This declaratory judgment action arises out of a dispute between two excess insurance providers, and stems from a settlement in an underlying personal injury claim. The plaintiff, GEICO, which contributed to the settlement, sought reimbursement from defendants Ohio Casualty Group, Ohio Casualty Insurance Company and Liberty Mutual Insurance Company, which did not participate in the settlement.  The other policy provided that it was excess above $10 million, but did not specify a specific policy which it was excess to. GEICO
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Insurer Need Not Defend Construction Defect Action Where Alleged Facts Did Not Establish an Occurrence

Steel Supply & Engineering Co. (Steel Supply) sought a declaratory judgment that Illinois National Insurance Co. (Illinois National), its insurer, breached its duty to defend and indemnify.  For the parties’ cross-motions for summary judgment, the critical issue was whether the alleged faulty workmanship resulted in damage to third-party property.  As background, Steel Supply contracted with the City of Carmel, Indiana to erect steel structures in connection with the construction of a performing arts center.  The city discovered defects in Steel
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Tenth Circuit Limits Policyholder Recovery for Defective Work and Rejects Windfall Award

This coverage dispute arose from a claim to recover the policyholder’s cost of repairing a site dewatering system.  Glacier Construction Company (Glacier) had contracted with a municipal body to build a new wastewater pumping facility.  Glacier purchased a builder’s risk insurance policy from Travelers Property Casualty (Travelers), which included coverage for “Builder’s Risk Site Preparation.” That provision stated, in pertinent part, as follows:  “If … You incur expenses to reexcavate the site, reprepare the site, regrade the land, or reperform
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Reinsurance Review Is Now Available

For a free copy of this month’s edition, click here.  Goldberg Segalla’s Reinsurance Review provides timely summaries of and access to the latest reinsurance law developments worldwide. For ease of reference, we have organized the cases by court and date. In addition, we provide the latest information regarding news in the insurance and reinsurance industries. To receive this publication for free each month, please contact Jeff Kingsley at jkingsley@goldbergsegalla.com.  
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Cases for Reinsurance Review

Cases provided courtesy of LexisNexis APPEAL OF THE LOCAL GOVERNMENT CENTER, INC. Astrazeneca Insurance Company Ltd v. XL Insurance (Bermuda) Ltd EMPLOYERS INSURANCE CO. OF WAUSAU V. ONEBEACON AMERICAN INSURANCE CO. MILAN EXPRESS CO., INC. V. APPLIED UNDERWRITERS CAPTIVE RISK ASSURANCE COMPANY, INC. MUNICH RE AMERICA V. AMERICAN NATIONAL INS. CO. R&Q REINSURANCE COMPANY V. UTICA MUTUAL INSURANCE COMPANY VALIDUS REINSURANCE, LTD V. UNITED STATES    
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December Edition of Reinsurance Review is Now Available

Please click the continue reading link below to access a free copy of this month’s edition.
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Cases for Reinsurance Review – December 2013 Edition

Cases provided courtesy of LexisNexis. ALLSTATE INSURANCE CO. V. ONEBEACON AMERICAN INSURANCE CO. AMLIN CORPORATE MEMBER LIMITED AND OTHERS V. ORIENTAL ASSURANCE CORPORATION BEAZLEY UNDERWRITING LIMITED AND OTHERS V. AL AHLEIA INSURANCE COMPANY AND OTHER COMPANIES CONTINENTAL INSURANCE COMPANY V. ROCKWELL COLLINS, INC. EQUITAS LIMITED V. WALSHAM BROTHERS & COMPANIES LIMITED IN RE REHAB. OF: SEGREGATED ACCOUNT OF AMBAC ASSUR. CORP. ONEBEACON AMERICA INSURANCE CO. V. COLGATE-PALMOLIVE COMPANY SENECA INSURANCE CO. V. EVEREST REINSURANCE CO. TEAL ASSURANCE COMPANY LIMITED V.
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