Ohio Supreme Court Holds Insurers Not Responsible for Charging Liens

The Ohio Supreme Court held that an insurer who settles a personal injury claim with an accident victim has no duty to issue payment directly to the victim’s former lawyer pursuant to a charging lien.[1]

In the underlying personal injury matter, an automobile accident victim hired a law firm to represent him. The victim and his law firm entered into a contract that granted the law firm a charging lien on the proceeds of any insurance payment, settlement, judgment, or verdict that might be …

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Pennsylvania Federal Court Reinforces The Principle That Liability Policies Insure Against Legal Obligations Owed To Others

Defense and indemnity obligations owed under liability policies depend on the allegations made in the underlying lawsuit. In NVR, Inc. v. Motorists Mut. Ins. Co., 2019 WL 989393 (W.D. Pa. Mar. 1, 2019), NVR, an additional insured under a CGL policy sought coverage for two lawsuits that arose out of a heater explosion at a construction site. NVR was the defendant in personal injury litigation. In a separate lawsuit, NVR sought recovery for property damage that it incurred due to the explosion. The personal injury lawsuit …

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Second Circuit Holds That Policy May Be Rescinded Before a Claim is Submitted for Coverage

The Second Circuit has held that an insurer need not wait until a claim is submitted under its policy in order to seek rescission of the policy based on a material misrepresentation by the insured. U.S. Underwriters Ins. Co. v. Orion Plumbing & Heating Corp., 18-2286-CV, 2019 WL 1253325.

The dispute arose under a policy issued in May 2012, which was later cancelled as a result of the insured’s failure to pay premiums. However, an incident involving bodily injury occurred prior to the policy’s …

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Mississippi District Court Finds Other Insurance Provisions Cancel Each Other Out

In EMJ Corp. v. Hudson Specialty Ins. Co., (2015 U.S. Dist. LEXIS 29781, 14-15, N.D. Miss. Mar. 11, 2015) the plaintiffs, EMJ Corporation and Westchester Fire Insurance Company, brought this declaratory judgment action against Defendant Hudson Specialty Insurance Company. They were seeking a declaration that Westchester was entitled to contribution from Hudson Specialty for the amount Westchester paid on behalf of EMJ in a settlement of an underlying personal injury action.

In partially granting the defendant’s motion for judgment notwithstanding the verdict and denying …

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