Jeffrey L. Kingsley

All articles by Jeffrey L. Kingsley

 

Insurers Not Liable To Third-Party Beneficiaries to a Homeowners’ Insurance Policy for Property Damage as a Result of Migration of Oil

The New Jersey Supreme Court considered whether the plaintiffs’ claims for private nuisance and trespass, in an action for damages resulting from the migration of heating oil from an underground storage tank on a neighboring property, were properly dismissed in Ross v. Lowitz, et al., No. A-101-13 (N.J. Aug. 6, 2015). In the same matter, however, the court also considered whether the plaintiffs could maintain claims as third-party beneficiaries against the insurers that provided homeowners’ coverage to the former and
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Malicious Prosecution and Trigger of Occurrence Based Coverage

In Selective Ins. Co. v. RLI Ins. Co., 2015 U.S. Dist. LEXIS 90572 (N.D. Ohio July 13, 2015), a coverage dispute arose after an individual who, following his exoneration from a criminal conviction for rape and murder, sued the municipality who had pursued the criminal case against him. During the relevant time period, the municipality held successive one year policies with two primary insurers and two excess insurers. The first excess policy ran from policy 1997 -1998 and the second ran
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Exceptional Circumstances are Required for Relief in a Claim for Bad Faith

In a favorable decision to insurers on the issue of bad faith, the New York Northern District was recently called upon to determine whether an insured under a Homeowner’s policy had stated a viable cause of action. In Ripka v. Safeco Ins., 2015 U.S. Dist. LEXIS 67595 (N.D.N.Y May 26, 2015), the District Court made it clear that New York courts will not, except in very limited circumstances, award tort and punitive damages in addition to contract damages against insurers who deny claims.
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Breach of Reinsurance Contract and Bad Faith Claims Survive Dismissal, District Court Rules

In Old Republic National Title Insurance Co. v. First American Title Insurance Co., 2015 U.S. Dist. LEXIS 44693, the U.S. District Court for the Middle District of Florida refused to dismiss portions of a cedent’s breach of contract claim, bad faith claim, and demand for declaratory judgment against a reinsurer. The reinsurance dispute arose when a cedent negotiated a $41 million settlement with the underlying insured, and the reinsurer paid its portion of the claim under a reservation of rights.
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Second Circuit Finds No Coverage Based on Late Notice Issue To a Reinsurer

The U.S. Court of Appeals for the Second Circuit affirmed a district court’s ruling that late notice, alone, was sufficient to defeat a cedent’s claim. In Granite State Insurance Co. v. Clearwater Insurance Co., No, 14-1494-cv, 2015 WL 1474605 (2d Cir. Apr. 2, 2015), the court was forced to determine whether Illinois law on late notice to a reinsurer was settled, or if it should instead apply New York’s prejudice requirement. Granite State Insurance Company, the cedent, settled a large
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1st Circuit is “Honorably Engaged” by Reinsurance Arbitration Award

In First State Insurance Co. v. National Casualty Co., No. 14-1644, 2015 WL 1263147 (1st Cir. Mar. 20, 2015) the U.S. Court of Appeals for the First Circuit addressed a motion to vacate an arbitration award related to multiple reinsurance and retrocessional agreements. The decision was the court’s first to address the operation and effect of a so-called “honorable engagement” provision in an arbitration clause. The case arose out of multiple agreements between First State Insurance Company and New England
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After Hours: New Jersey Superior Court Holds Definition of Employee and Exclusion for Employee’s Criminal Acts Both to be Unambiguous

In Union Hill Supremo Pharmacy v. Franklin Mut. Ins. Co., No. L-705-13 (N.J. Super. Ct. App. Div., March 4, 2015) the Superior Court of New Jersey, Appellate Division decided that an insurance policy’s definition of “employee” was unambiguous. The court further held that a part-time employee fell within the definition of “employee” and that a policy exclusion based on an “employee’s” criminal acts applied even when the employee was not working at the time of the crime’s commission. The insured,
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Third Circuit Affirms Denial of Reinsurance Contract Rescission

Munich Reinsurance America, Inc. (“Munich”) provided reinsurance coverage to Everest National Insurance Co. (“Everest”) on workers compensation claims.  Munich then sought reinsurance coverage for its own liability and did so from Continental Casualty Insurance Co. (“Continental”).  Eventually, the independent underwriter that represented Continental in the deal informed Munich that it no longer underwrote coverage for Continental.  At that time, the underwriter suggested replacing Continental with American National Insurance Company (“ANICO”).  Munich gave the underwriter the same files Munich received from
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Second Circuit Holds “Loss Expenses” Not Categorically Excluded from Liability Limit of Facultative Reinsurance Certificate

In Utica Mutual Insurance Co. v. Munich Reinsurance America, Inc., the Second Circuit Court of Appeals reversed and remanded a summary judgment determination against a reinsurer with regard to the reinsurer’s obligations to reimburse the insured’s claim expenses. Utica Mutual Insurance Company had issued an umbrella policy to Goulds Pumps, Inc. Utica incurred millions of dollars of losses under this policy due to asbestos-related litigation brought against Goulds. Munich Reinsurance reinsured Utica’s umbrella policy under a facultative reinsurance certificate that
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New Reinsurance Deskbook from Thomson Reuters and DRI Features Thomas Segalla as Editor, Seven Goldberg Segalla Contributors

Goldberg Segalla founding partner Thomas F. Segalla led the team of lawyers who wrote the inaugural edition of the Reinsurance Professional’s Deskbook: A Practical Guide, a new treatise co-produced by leading legal publisher Thomson Reuters and DRI – The Voice of the Defense Bar, the largest organization of defense lawyers in the country. The Reinsurance Professional’s Deskbook is a comprehensive resource that explores in depth traditional insurance and reinsurance concepts as well as emerging trends in today’s insurance markets, with a focus on practical assessment and
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Sixth Circuit: ‘Advertising Idea’ Must Involve ‘Plan, Scheme, or Design’ to Bring Public Attention; Standing Alone Customer List is Not a ‘Plan’

On Friday, August 15, The 6th Circuit Court of Appeals upheld an order from the Eastern District of Kentucky, granting Liberty Corporate Capital Limited’s declaratory judgment determining it has no duty to indemnify or defend the plaintiff firearms retailer. Security Safe Outlet (SSO), a firearms retailer in Kentucky, acquired BudsGunShop.com LLC’s (the website) customer information database through their employee, Matthew Denninghoff, who previously worked in IT for the website.  Denninghoff allegedly maintained a copy of the website’s customer database and
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Motor Carrier Act Does Not Expand Policy Definitions Where Coverage Exceeds Statutory Minimums, Sixth Circuit Says

On August 5, the Sixth Circuit Court of Appeals reversed and remanded a lower court ruling granting an insurer a Rule 12(c) dismissal in a declaratory judgment action based on the district court’s premature determination of what constituted an “employee” under the policy at issue. The Estate of Donald Underwood sued Expeditor’s Express, a trucking company for whom Underwood was driving, after Underwood’s truck veered off the road, burst into flames, and killed him. Expeditor asked its insurer, Gramercy Insurance
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11th Circuit Rejects ‘Complaint Taken as a Whole’ Analysis of Insurer’s Duty to Defend, Places Reinsurer on Hook for Defense Costs

In Public Risk Management of Florida v. One Beacon Insurance Co., the 11th Circuit Court of Appeals reversed a decision relieving primary insurer Public Risk Management of Florida (PRM) of its duty to defend the City of Wintergarden because the underlying “Complaint taken as a whole” failed to state that the City committed a covered wrongful act.  As a result, reinsurer OneBeacon Insurance Company was forced to pay PRM’s defense costs. PRM is an intergovernmental risk management association that insures
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Mining Operations Exclusion Applies, but Only to Excess Layers

The Tenth Circuit overturned the lower court’s decision that would have freed a liability insurer from covering damages allegedly caused by its insured brine well operator. Specifically, the insured was alleged to have been negligent in causing destabilization of various structures caused by an underground cavern.  This insurer issued primary and numerous excess/umbrella policies. Initially, the insurer was not responsible for providing coverage due to an umbrella provision that excluded coverage due to damage or loss of use of property
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Eleventh Circuit Blows Away $4M Verdict in Hurricane Wilma Case

The Eleventh Circuit recently reduced a $4 million jury verdict to $1,600 after finding that the policyholder, a property management company, lacked an insurable interest in the ownership of the property to justify any higher award. The plaintiff, Banta Properties (Banta), served as the property management company for three apartment complexes in Broward County, Florida. The three complexes were all separate legal entities that were not owned by Banta. In exchange for managing the complexes, the owners paid Banta 4
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Cuse Wins Again: Appellate Court Ruled that Investigative Subpoenas Involving Syracuse University Coach Bernie Fine are Covered Under Policy

A New York appellate court recently affirmed a lower court’s ruling that a claims-made policy issued to Syracuse University covered the university’s cost of responding to investigative subpoenas issued in connection with sexual abuse allegations against its former Associate Basketball Coach, Bernie Fine. In November 2011, Syracuse University became aware of public media reports of allegations that Bernie Fine sexually abused two former participants in the university’s basketball program (referred to as “ball boys”) over a period of years while
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Employee Exclusion Applies to “Statutory Employees” Even if Not Technically Employed by Additional Insured

The Eleventh Circuit recently held that a standard employee exclusion in a liability policy bars coverage to an additional insured where the injured claimant is a “statutory employee” of the additional insured for purposes of workers’ compensation law, even if the injured claimant is not technically employed by the additional insured. The estate of an employee of a third-tier subcontractor on a construction project sued the project’s general contractor after the employee fell at the construction site and died as
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Tolling Agreements Cause Coverage Concern

An insurance coverage dispute has arisen in connection with litigation involving a robotic surgery medical device maker. A declaratory judgment action seeking rescission of product liability insurance policies issued to the manufacturer was filed in the U.S. District Court for the Northern District of California. If successful, the insurer may avoid obligations under its primary and excess insurance policies providing $15 million per occurrence and $50 million aggregate. To read the rest of this article, authored by Sean T. Stadelman,
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“Personal and Advertising Injury” Coverage Insures Property Damage, Not Just Physical Harm

An Illinois appellate court recently held that insurance coverage for wrongful eviction claims, typically part of “personal and advertising injury” provided by Coverage B in CGL policies, includes coverage for property damage as a result of the eviction, not just physical harm to a person. The insured property owners leased commercial space to a tenant who worked as an architect, painter, and sculptor. The tenant used the space as a rent storage and work space. During the lease term, the
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Rule Followed by NY Federal Court for Damages Outside NY

Indian Harbor Insurance Company v. The City of San Diego  (Case No. 12-cv-5787) (S.D.N.Y., September 25, 2013) A New York federal court continued to honor the line of New York cases that stand for the proposition that a showing of prejudice is not required for the late notice defense on policies issued or delivered prior to January 17, 2009. This case arose as a result of multiple underlying claims made against a California State municipality by two homeowners associations and
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Insured vs. Insured Exclusion Bars Coverage for Bank Officers in FDIC Suit

St. Paul Mercury Ins. Co. v. Miller (N.D. Ga. Aug. 19, 2013)  A Georgia court recently held that an insured-vs-insured exclusion in a directors and officers policy precluded coverage for two former officers of a failed bank sued by the FDIC. The FDIC took over the failed Community Bank & Trust of Cornelia, Georgia and then sued two former officers in connection with their role in improperly approving loans. The bank’s D&O insurer agreed to defend the officers subject to
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Texas Supreme Court to Rule on BP-Transocean Coverage Dispute

(Tex. Sept. 6, 2013)  The Texas Supreme Court announced Friday that it would enter the fight over $750 million in insurance coverage for the catastrophic BP oil spill that occurred in April 2010. This past March, the Fifth Circuit rule on the scope of BP’s additional insured coverage under excess policies issued to Transocean. The Fifth Circuit ruled that “where an additional insured provision is separate from and additional to an indemnity provision, the scope of the insurance requirement is
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New York Court of Appeals to Re-Hear K2

The New York Court of Appeals granted a rehearing of a coverage decision that has wide ranging implications for the insurance industry. In K2 Investment Group LLC v. American Guarantee & Liability Insurance Co., decided on June 11, 2013, the Court of Appeals rejected American Guarantee’s argument that it was entitled to a trial over whether a policy exclusion applied after it had breached its duty to defend. In new found precedent, the Court of Appeals held that because the
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New York Court Predicts California’s Future: Allows Bad Faith Exception in Reinsurance Late Notice Defense

Ins. Co. of the State of Penn. v. Argonaut Ins. Co. U.S. Dist. Ct., S.D.N.Y. (August 6, 2013) In this case, the cedent sued its reinsurer when it denied coverage because of late notice of its claim.  Both parties filed a motion for summary judgment arguing the applicability of the late notice defense.  The court granted the reinsurer’s motion. From 1980-2009, a series of disputes and negotiations arose regarding asbestos claims against the underlying insured.  It was not until 2009,
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Missouri Supreme Court Levies Insurer with Judgment $3 Million in Excess of Policy Limits in TCPA Case

Columbia Cas. Co. v. Hiar Holding, LLC (Mo. Aug. 13, 2013) The Missouri Supreme Court recently ordered an insurer to indemnify its insured for a $5 million settlement in an underlying Telephone Consumer Protection Act (TCPA) case, $3 million of which was in excess of the policy’s limits. The TCPA provides a private right of action for recipients of unsolicited communications that are sent via automatic dialers, among other methods. A recipient may bring an action to recover $500 per violation,
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ABA’s Blawg 100 – Nominations Due August 9th

The ABA Journal is putting together its annual list of the 100 best legal blogs, based on reader votes. As publishers of the Insurance and Reinsurance Report, we are proud to be considered for this prestigious list — and we would be honored if you would help. If you enjoy visiting the Insurance and Reinsurance Report, and believe it is worthy of industry recognition, please click here to visit the ABA Blawg 100 Amici page and nominate us before the
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Injury-In-Fact Trigger Applied In Alabama Manufactured Gas Contamination Suit

Alabama Gas Corp. v. Travelers Cas. & Surety Co. (U.S.D.C. Northern District of Alabama, July 16, 2013) This environmental coverage action arises from a dispute as to whether the insurer’s multiple policies provided indemnity for past environmental contamination at a former manufactured gas plant prior to being redeveloped as low income housing. Specifically, the Huntsville Gas Light Company, which incorporated in 1856, provided manufactured gas from various sources to customers until 1946.  In 1946, the Huntsville facility was converted to
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California Cuts To Rural Healthcare Services Violate Medicaid Act

California Ass’n of Rural Health Clinica; Avenal Community Health Center v. Douglas et al. United States Court of Appeals for the Ninth Circuit, July 5, 2013 California recently enacted legislation that eliminates coverage for certain healthcare services in under-served rural areas to help curb the State’s budgetary woes. Specifically, the legislation cut coverage for adult dental, podiatry, optometry and chiropractic services in rural areas. The court ruled that eliminating coverage for such programs would be in conflict with the Medicaid
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10th Circuit Doesn’t Agree with ACA Rule on For-Profit Religious Organization Exemptions

Hobby Lobby Stores Inc. et al. v. Sebelius et al. June 27, 2013 The plaintiff in Hobby Lobby Stores Inc. et al. v. Sebelius et al. operates 525 retail stores across the country and employs more than 13,000 full-time workers. The family which owns the Oklahoma-based company says having to provide coverage for the morning-after pill and similar contraceptives, which they regard as tantamount to abortion, violates their Christian beliefs. The 10th Circuit found that the for-profit employer may be
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Too Little, Too Late: Malpractice Coverage Evaporates With Law Firm’s Tardy Notice

Minnesota Lawyers Mut. Ins. Co. v. Baylor & Jackson, PLLC (4th Cir. (Md.) June 27, 2013) The Fourth Circuit recently held that a malpractice insurer was not obligated to defend or indemnify a law firm against a multi-million dollar lawsuit arising from the firm’s failure to submit admissible evidence in opposition to a motion for summary judgment. The court held that the firm breached the policy’s notice provision by waiting until an appellate court affirmed the lower court’s ruling granting
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Nothing Comes Between Me and My Calvins…Except an Uncovered Trademark Infringement Lawsuit

CGS Indus., Inc. v. Charter Oak Fire Ins. Co. |(2nd Cir. (N.Y.) June 11, 2013 The Second Circuit recently held that the phrase “infringement of title” in a liability policy does not encompass trademark infringement. Thus, the court found that a liability insurer was not obligated to indemnify its insured (not Calvin Klein) against a claim for allegedly copying the claimant’s rear-pocket stitching design in its jeans. The decision is noteworthy because it puts to rest policyholders’ argument, at least
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Supreme Court Affirms Arbitration Ruling Under Limited Review Authorized Under §10(a)(4) of the Federal Arbitration Act

Oxford Health Plans v. Sutter (United States Supreme Court, June 10, 2013) This action arises from an arbitrator’s decision on whether a contract authorizes class arbitration and whether the arbitrator’s decision survives the judicial review allowed by §10(a)(4) of the Federal Arbitration Act (FAA). Specifically, a physician entered into a contract with the insurer and agreed to provide medical care to members of the insurer’s network. The physician, on behalf of himself and a proposed class, sued the insurer, alleging
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Insurers’ Goal Line Stand: California Coverage Action Stayed While New York Case Marches On

National Football League v. Fireman’s Fund Ins. Co. (Cal. App. Ct. May 28, 2013) A California appellate court recently affirmed a stay of California litigation commenced by the NFL against multiple insurers seeking coverage for traumatic brain injury cases. The court held that the NFL was not a California resident for purposes of a forum non conveniens analysis even though it has three teams in California. The NFL administration and its intellectual property marketing arm were sued in multiple states
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Court Finds that Ownership is indeed 9/10th of the Law in Rescission Case

PHL Variable Ins. Co. v. P. Bowie 2008 Irrevocable Trust (1st Cir. (R.I.) May 13, 2013) The First Circuit recently held that an insurer may retain life insurance premiums following a policy rescission to offset the loss it has suffered. The ruling is notable because courts typically require an insurer to refund an insured’s policy premium where a rescission is effected. In PHL, an insurance broker submitted an application for life insurance for Peter Bowie. Bowie’s application represented that he
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New York First Department’s Message to Insureds: An Equitable Defense Concerning A Policy Exclusion Cannot Be Decided By Motion Practice

206-208 Main St. Assocs. d/b/a/ Sutphin Blvd., LLC v. Arch Ins. Co. (N.Y. App. Ct., 1st Dept. May 2, 2013) A New York appellate court recently held that the issue of whether an insurer was equitably estopped from raising an earth movement exclusion as a defense to coverage two years after it had assumed the purported additional insured’s defense was an issue for the trier of fact. The plaintiff, 206-208 Main Street Associates, Inc. d/b/a 8930 Sutphin Blvd., LLC hired
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Reconsideration Granted in Part in Reinsurance Dispute

Munich Reinsurance Am., Inc. v. Am. Nat’l Ins. Co. (D.N.J. Mar. 28, 2013) On March 28, 2013, USDC Judge Freda L. Wolfson granted summary judgment in part on a motion for reconsideration of an earlier decision, but noted that with respect to certain retrocessional reinsurance claims there remain genuine issues of material fact. In the case, Munich Reinsurance America Inc. (Munich Re) reinsured the workers’ compensation insurance program of Everest National Insurance Co. (Everest) under an excess-of-loss reinsurance agreement. Munich
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Firm Left Without Malpractice Insurance For Botched Sales Contract

Koransky, Bouwer & Proacky, P.C. v. The Bar Plan Mut. Ins. Co. (7th Cir. (Ind.) Apr. 2, 2013) The Seventh Circuit recently affirmed a ruling that left a law firm without insurance coverage for a malpractice claim arising from a sales transaction gone awry. The court held that the firm’s failure to disclose the potential lawsuit to its malpractice insurer precluded coverage. The plaintiff law firm represented a potential buyer in the purchase of four Rite Aid drugstores in Ohio.
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A Rose by Any Other Name: New Federal Reserve Rule Defines “Financial Activity”

What’s in a name? What one is designated as or called in the regulatory world is important. It can literally define which regulatory regime one falls under. In the case of nonbank “financial institutions,” it can mean the difference between being considered for a “list” with additional rules and not. As this particular industry waits for the first list of nonbank systemically important financial institutions (SIFI), the Federal Reserve sought to clarify what constitutes “financial activity.” On April 3, 2013,
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No Prejudice, No Problem: Reinsurer Not Required to Show Prejudice in Late Notice Dispute

AIU Ins. Co. v. TIG Ins. Co. (S.D.N.Y. Mar. 25, 2013) On March 25, Judge Sidney H. Stein, of the USDC for the Southern District of New York, agreed with a magistrate report and recommendation and granted summary judgment to a reinsurer, ruling that the reinsurer did not have to show prejudice when denying coverage because of an insurer’s late notice of a claim. Foster Wheeler, a company that used asbestos in its products, was insured by Liberty Mutual Insurance
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Illinois Court Protects Insurers from Unripe Coverage Disputes

Byer Clinic & Chiropractic, Ltd. v. State Farm Fire & Cas. Co. (Illinois Appellate Court Mar. 12, 2013) An Illinois Appellate Court recently held that an insurer’s defense obligation is not ripe for adjudication if that insurer is defending its insured in an underlying court action, even if subject to a reservation of rights. The plaintiff filed a class-action complaint against the insured, Kapraun, P.C., and Dr. Michael Kapraun, alleging a violation of the Telephone Consumer Protection Act of 1991 (TCPA).
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Attorney’s Fees Count Toward Amount-in-Controversy Calculation Under Federal Removal Statute

Francis v. Allstate Ins. Co. (4th Cir. (Md.) Mar. 7, 2013)  The Fourth Circuit recently held that the amount of attorney’s fees sought by an insured in a declaratory judgment action should be included in the calculation to determine whether an insurance coverage case satisfies the amount-in-controversy requirement under the federal removal statute. In 2008, the insured, a California resident, and her minor son were sued in the Maryland state court. The claimant worked as a resident aide at the
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Fifth Circuit Reverses District Court, Holds BP Was Entitled to Additional Insured Coverage Under Insurer’s Policy for Environmental Claims

In Re: Deep Water Horizon; Ranger Ins. Ltd. v. TransOcean Offshore Deepwater Drilling, Inc. et. al. (5th Cir., March 1, 2013) This environmental coverage action arises from the explosion and sinking of Transocean’s Deepwater Horizon oil platform in April 2010.  At issue were the obligations of Transocean’s primary and excess liability insurer to cover BP’s pollution-related environmental liabilities resulting from the ensuing oil spill.  Transocean owned the subject offshore oil platform and at the time of the incident and was engaged
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England’s Court of Appeal Clarifies Questions Concerning Apportionment of Losses in Professional Indemnity Policy

Standard Life Assurance Ltd v ACE European Group [2012] EWCA Civ 1713 This case concerns whether the insured was entitled to recover, without apportionment, the full amount of its first party claim (as opposed to a third party claim), which it paid under a “mitigation costs” clause in a professional liability policy covering the insured against third party claims arising out of the provision of financial services. The insured, Standard Life Assurance Ltd (SLAL), launched a fund in 1996 which
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Arbitrator’s Interlocutory Ruling Not Ripe for Judicial Review

Klehr v. Illinois Farmers Ins. Co. (Ill. Ct. App. Jan. 22, 2013) In a matter of first impression in Illinois and nationally, an Illinois Appellate Court recently held that interlocutory rulings by arbitrators are not ripe for judicial review until the arbitration process is complete. The plaintiff was injured in a hit-and-run accident. She filed a claim with her insurance carrier for uninsured motorist coverage and demanded arbitration under the arbitration provision in her insurance policy. The matter was referred
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Mesothelioma sufferer successful in action against owner of factory, although factory owner was not employer

FRANK BAKER v. TATE & LYLE PLC (2012)   Mr. Baker was briefly employed by a company as a lagger’s labourer during the 1963-1964 tax year, when he was 16-years old. At that time, the company sent Mr. Baker to do a job at one of the factories of Tate & Lyle, the defendants in this action. When carrying out his job at Tate & Lyle’s factory, which lasted for about five weeks, Mr. Baker was exposed to substantial quantities
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To [Follow] or Not to [Follow] – That is the Question: NY Court of Appeals Hears Important Case on Follow-the-Fortunes

The weather in Albany, New York might have been cold on January 2, but the New York Court of Appeals’ bench was scorching during the oral argument for the appeal in United States Fid. & Guaranty v Am. Re-Ins. Co. The five-judge bench fired question after question at counsel concerning important issues concerning the reinsurance industry. The appeal concerns a reinsurance dispute. More specifically, the appeal concerns whether follow-the-fortunes applies to the post-allocation phase of an insurance payout and whether
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Seventh Circuit Grants Temporary Restraining Order to Catholic Contractor on Contraception Mandate

Korte v. Sebelius United States Court of Appeals for the Seventh Circuit (December 28, 2012) On December 28, 2012, the Seventh Circuit issued a temporary restraining order exempting a contracting company from the contraception rule under the Affordable Care Act. This ruling was in line with other courts including the Eighth District in O’Brien v. U.S. Dep’t of Health & Human Servs. as well as other district courts including a Michigan Federal District Court, which granted a temporary restraining order
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Firearm Exclusion Bars Coverage for Pre-Assault Negligence

Capitol Specialty Ins. Corp. v. JBC Entm’t Holdings, Inc. (Wash. Ct. App. Dec. 10, 2012) In a matter of first impression, a Washington Appellate Court recently held that a firearm exclusion unambiguously precluded coverage for negligent hiring and supervision claims related to a shooting at the insured’s nightclub. The insured, JBC Entertainment Holdings, Inc., operates a nightclub in Seattle, Washington. In 2010, an unknown person fired a gun at the nightclub, injuring a patron. The patron sued the nightclub and
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Andy Warhol Art Authentication Board Owed Coverage Under Directors and Officers Policy

The Andy Warhol Foundation for the Visual Arts, Inc. v. Philadelphia Indemnity Ins. Co., Supreme Court of the State of New York, County of New York (Dec. 6. 2012) The plaintiffs, Andy Warhol Foundation for the Visual Arts, Inc. and the Andy Warhol Art Authentication Board, Inc., beat a summary judgment motion brought on by their insurer, Philadelphia Indemnity Ins. Co (PIIC), seeking a judgment that it owed no coverage for defense costs incurred in an underlying class action. The plaintiffs
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BCS Insurance Company Fined by the State of Washington Insurance Commissioner for Issuing Unapproved Policies

On October 22, 2012, The State of Washington Office of the Insurance Commissioner (OIC) fined BCS Insurance Company for issuing policy forms that were not filed with and approved by the OIC.  BCS insurance had only two travel insurance policy forms filed and approved by the Washington OIC. Between 2007 and 2009, BCS issued over 500,000 travel insurance policies on up to 72 different forms, that deviated from the two filed and approved forms.  The forms omitted language, changed the
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