Cases Cited in Goldberg Segalla’s Case Watch

Click here for the full decision to the cases cited in this edition's Case Watch:

Download 126 Mulberry St. Realty Corp. v. Diamond State Ins. Co

Download Alea_London_Limited_v__Bickford__et_al_

Download Alleman v. State Farm Life Insurance Co

Download Ball_v__Wilshire_Insurance_Co_

Download Bloyed_v__Affiliated_Employers_Health_&_Welfare_Trust__et_al_

Download Bridgetown_Condominium_Homeowners_Assoc_v__Ford_Development_Inc___et_al_

Download Bristol W. Ins. Co. v. Wawanesa Mut. Ins. Co

Download Cornett Management Co. LLC v. Fireman's Fund Ins. Co

Download Davis-Travis_v__State_Farm_Fire_&_Casualty_Co_

Download Dobson v. Citigroup

Download Eberts v. Goderstad

Download Erie Insurance Exchange v. Baker

Download Erie Insurance Group v. National Grange

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District Court Denies $17 Million in Defense Costs for Breach of Contract Claims by Tobacco Company

American Legacy Foundation v. National Union Fire Ins.

(D.C. Delaware, July 9, 2009)

The District Court of Delaware held that the plaintiff was not entitled to defense costs associated with a declaratory judgment action it commenced involving a Master Settlement Agreement (MSA) involving several tobacco companies.   Arguing the plaintiff was disseminating “false and misleading” information, one tobacco company threatened legal action against the plaintiff, including claiming that it breached the MSA “vilification” provision.  The plaintiff, in turn, commenced a declaratory judgment action and the tobacco company

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Seventh Circuit Declares Insured Versus Insured Exclusion Applies In D&O Context

Biltmore Associates, LLC v. Twin City Fire Ins. Co.  (9th Cir. (Az.) July 10, 2009)

A bankrupt corporation assigned its claims to its creditors’ trust.  The trustee for the creditors’ committee sued the insurer under a directors and officers liability insurance policy that excluded from coverage various claims brought by the insured corporation against its own officers or directors.  The complaint was properly dismissed because a cause of action by a corporation against its officers or directors for mismanagement belongs to the

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Chinese Drywall Litigation Update: Developer Files Third-Party Complaint Seeking Insurance Coverage

On July 6, 2009, Dragas Management Corporation ("Dragas"), named in the lawsuit filed in Eastern District of Virginia allegedly as the developer of residential homes in a developmental complex which installed imported Chinese Drywall material, filed a Third-Party Complaint against Hanover Insurance Co. and Citizen Insurance Company of America seeking insurance coverage under the commercial general liability and umbrella insurance policies they issued to the subcontractor.

According to the Third-Party Complaint, Dragas alleges the agreements with the subcontractor "fall squarely within the conditions designating Dragas as an …

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Second Circuit Allows The Insurer To Assign Policies Originated by Terminated Agent

Legacy Group of America, Inc. v. North American Company For Life And Health Insurance (2d Cir. July 8, 2009)

In an action successfully handled by the authors, the Second Circuit affirmed the district court's decision granting summary judgment in favor of the insurer together with awarding legal fees and expenses.  The action centered on a solicitation agreement executed by the parties in October of 1993 in which the plaintiffs were granted the authority to solicit applications for insurance policies as well as place application with the insurer pursuant to some conditions.  In exchange, the insurer agreed to

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Third Circuit Rules that Life Insurer Allowed to Charge Aggregate Premium to Both Smoking and Non-Smoking Juveniles

Alleman v. State Farm Life Insurance Co.

(3rd Cir. [ Pa.] June 26, 2009)

The owner of two whole life insurance policies insuring the lives of her sons filed suit against the insurer alleging that it breached its insurance contract by charging the same insurance premiums for non-smoking juveniles as it did for smoking juveniles.  Although the insurer asked whether the insureds smoked in the application for insurance, it had a single aggregate premium for all juveniles.  The Third Circuit held that

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Class Action Lawsuit Filed Against Insurance Brokers for Allegedly Assisting the Robert Allen Standford’s Ponzi Scheme

Samuel Troice et al v. Willis Group Holdings, LTD et al

(Northern District of Texas, July 2, 2009)

 

Just days after it was announced that fallen Stanford Financial Group’s disgraced CFO, James Davis, would plead guilty to his role in Stanford’s alleged $7 billion ponzi scheme, a group of Mexican investors filed a class against complaint against Stanford’s insurance brokers, including Willis Group Holdings, Ltd., alleging the brokers effectively became partners in the ponzi scheme by issuing letters certifying that Stanford was “safe and sound,”

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Court Of Appeals Held Insurer Was Not Obligated To Defend Policyholder For Fraud Claims Under Its Professional Liability Policy As Claims Constituted Common Business Transactions

St. Paul Fire & Marine Ins. Co. v. ERA Oxford Real Estate Co. et. al.

(United States Court of Appeals, Eleventh Circuit, June 23, 2009)

 

The insurer appealed an order from the United States District Court for the Northern District of Alabama holding that a professional liability insurance policy issued by the insurer to a real estate company obligated the insurer to provide a legal defense for certain fraud, deceit, and antitrust claims pending in state court against the insured.    Specifically, the policy

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Bad Faith: The Admissibility of Expert Testimony and the Challenges That Follow

The issues involved in most bad-faith cases tend to be fairly complex.  This is not completely surprising in a circumstance where there must be a strong disagreement between the two sides as to some insurance issue before there will be any action.  Apart from potential concerns that a jury may weigh expert opinions too heavily, there is little denying that expert testimony may serve the cause of both sides to a bad-faith action.  This article examines the challenges experts face in bad faith lawsuits. 

For a …

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