Insured Stuck Defending Itself Against Claims of False Advertising an Elastic Tape Product

In Cincinnati Insurance Company v. KT Health Holdings, LLC et al. (D. Mass. Mar. 27, 2017), a Massachusetts federal district court held that an insurer had no duty to defend or indemnify its insureds, finding that allegations by a putative class that the insureds falsely advertised their product did not trigger bodily injury coverage under a CGL policy. As background, the defendants, KT Health Holdings and KT Health (collectively “KT”), manufacture and sell KT Tape for sports and fitness activities.
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Illinois Appellate Court Extends Bridgeview on Choice of Law and Finds No Duty To Defend Against Blast Fax Suit

After vacating its prior decision pursuant to an order by the Illinois Supreme Court, the Appellate Court of Illinois, Second District, in G.M. Sign, Inc. v. Pennswood Partners, Inc. 2015 IL App (2d) 121276-B, determined that the insurers, Maryland Casualty Company and Assurance Company of America (collectively “Zurich”), had no duty to defend or indemnify Pennswood Partners, Inc., with respect to a blast fax case filed by G.M. Sign, Inc. The crux of the Appellate Court’s decision was how to
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Cigna Has Continued its Battle for Coverage of ERISA Class Action

Cigna has continued its fight for coverage again urging the Pennsylvania Superior Court to overturn a decision that let its excess insurers off the hook over an ERISA class action brought by the company’s employees. The dispute centers on changes to the benefit plan, which U.S. District Judge Janet Arterton’s 2012 decision found had been fraudulently altered. Cigna argues that this finding does not qualify as a fact finding, and that the fraud exemption was inaccurately applied. Cigna’s argument has
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Court Won’t Kick Out Class Action Kickback Claims Against HSBC

Moriba Ba v. HSBC USA, Inc. United States District Court for the Eastern District of Pennsylvania June 26, 2013 The plaintiffs, Moriba Ba, Donald Chipp, Sherrica Chipp, Shawn Hunt, Eugene Murano, and Yolanda Wiggins filed a class action complaint, alleging that HSBC USA Inc. received kickbacks from private mortgage insurers, in violation of the Real Estate Settlement Procedures Act of 1974 (RESPA) and common law unjust enrichment by the defendants. The plaintiffs allege that they obtained home mortgage loans from
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Dismissal of Class Action Against Title Insurer Upheld; Duty Alleged By Appellants’ Have No Support in Florida Law

Bleich et al. v. Chicago Title Insurance Co., Third District Court of Appeal, Florida; Case number 3D12-1261 Plaintiffs Arthur Bleich and Gloris Elder (plaintiffs) appealed an award of summary judgment in favor of the defendant, Chicago Title Insurance Company (Chicago Title), dismissing the underlying class action lawsuit against Chicago Title for claims of overcharging for title insurance. The lower court granted summary judgment on the basis that Florida law did not require Chicago Title to search for homeowners’ prior insurance
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