Posts filtered by tags: Tred Eyerly[x]


 

Cross-Claim Against Co-Insureds Dismissed Without Prejudice

    In a case related to Great Divide Ins. Co. v. Hawaiian Kamali`i , 2019 U.S. Dist. LEXIS 43106 (D. Haw. March 15, 2019) [post here], the Federal District Court for the District of Hawaii confronted issues created by a cross-claim for one of the purported insureds.  United States Fire Ins. Co. v. Hawaiian Canoe Racing Ass'ns , 2019 U.S. Dist. LEXIS 55034 (D. Haw. March 29, 2019).      Similar to Great Divide , this case also involved coverage for an accident during the 2016 Pailolo Challen...
Tags: Duty to Defend, Duty to Indemnify, Tred Eyerly


Property Damage to Insured's Own Work is Not Covered

    The Michigan Court of Appeals found there was no coverage for a lawsuit filed against the insureds for faulty workmanship.  Skanska United States Bldg. v M.A.P. Mech. Contrs. , 2019 Mich App. LEXIS 529 (Mich. Ct. App. March 19, 2019).     Contractor Skanska United States Building was the construction manager on a renovation project for the medical center. The heating and cooling portion of the project was subcontracted to M.A.P. Mechanical Contractors (MAP). MAP had a CGL policy from Amerisu...
Tags: Insurance, Michigan, Skanska, Michigan Court of Appeals, Comprehensive General Liability, Construction Defects, Duty to Defend, Tred Eyerly, Skanska United States Bldg, Skanska United States Building, Amerisure Insurance Company Skanska


Property Damage to Insured's Work is Not Covered

    The Michigan Court of Appeals found there was no coverage for a lawsuit filed against the insureds for faulty workmanship.  Skanska United States Bldg. v M.A.P. Mech. Contrs. , 2019 Mich App. LEXIS 529 (Mich. Ct. App. March 19, 2019).     Contractor Skanska United States Building was the construction manager on a renovation project for the medical center. The heating and cooling portion of the project was subcontracted to M.A.P. Mechanical Contractors (MAP). MAP had a CGL policy from Amerisu...
Tags: Insurance, Michigan, Skanska, Michigan Court of Appeals, Comprehensive General Liability, Construction Defects, Duty to Defend, Tred Eyerly, Skanska United States Bldg, Skanska United States Building, Amerisure Insurance Company Skanska


Exclusion j (6) Not Applicable to Bar Coverage for Alleged Faulty Workmanship

    The appellate court vacated the trial court's grant of summary judgment to the insurer because of the subcontractor's alleged faulty workmanship.  All America Ins. Co. v. Lampasona Concrete Corp. , 2019 Mass. App. LEXIS 34 (March 19,2019).      After construction of the hospital, the Northeast Hospital Corporation (NHC) sued he general contractor, alleging property damage to the finished first floor and other areas of the hospital. The contractor filed a third-party complaint seeking indemni...
Tags: America, Insurance, All America, Comprehensive General Liability, Duty to Defend, Tred Eyerly, Business Risk Exclusions, All America Ins Co, Lampasona Concrete Corp, Northeast Hospital Corporation NHC, Lampasona Concrete Corporation, Lampasona


Watercraft, Events Exclusions Bar Coverage

    The Federal District Court for the District of Hawaii found bodily injury suffered in a boating accident was barred under the policy's Watercraft and Events Exclusions.  Great Divide Ins. Co. v. Hawaiian Kamali`i , 2019 U.S. Dist. LEXIS 43106 (D. Haw. March 15, 2019).     The Hawaiian Canoe Club (HCC) hosted and sponsored the 2016 Pailolo Challenge Outrigger Canoe Race on September 17, 2016, from Kapalua, Maui to Kaunakakai, Moloka`i. Mark Stevens agreed to provide and operate an escort boat...
Tags: Insurance, Hawaii, Steven, Stevens, Hawaii Supreme Court, HCC, Mark Stevens, Kobayashi, Ohana, Federal District Court, Kaunakakai, Comprehensive General Liability, Duty to Defend, Tred Eyerly, Kapalua Maui, Events Exclusions Great Divide Ins Co


Conversion of Premiums Claim After Denial of Coverage Fails as Matter of Law

    The insured sued for conversion of his premiums after the insurer denied its claim for collapse of a retaining wall.  Lead GHR Enterprises, Inc. v. Am States Ins. Co. , 2019 U.S. Dist. LEXIS 29412 (D. S. D. Feb. 25, 2019).     Suit was filed after the insured's claim was denied. Cross motions for summary judgment were filed. The insurer sought to dismiss the conversion claim as a matter of law. The court agreed that the insured could not attempt to recover premiums on a conversion theory bec...
Tags: Insurance, Collapse, Merriam Webster, Tred Eyerly, First Party Insurance, wall Lead GHR Enterprises Inc, Am States Ins


Coverage Action Properly Removed to Hawaii Federal District Court

    The court denied plaintiff's motion for remand after his coverage case was removed to federal district court.  Greenson , 2019 U.S. Dist. LEXIS 29476 (D. Haw. Feb. 25, 2019).     Greenspon filed a coverage action in Hawaii state court against AIG, Prommis Solutions Holding Corp. (PSHC), and the law firm, McCorriston Miller Mukai and MacKinnon. The action arose from a March 14, 2018 default judgment obtained by Greenspon in a 2014 state court wrongful foreclosure lawsuit against PSHC. AIG was...
Tags: Insurance, Aig, Hawaii, MacKinnon, Tred Eyerly, Greenspon, Removal, Hawaii Federal District Court, Director's and Officer's Insurance, Greenson, AIG Prommis Solutions Holding Corp PSHC, McCorriston Miller Mukai, PSHC AIG, PSHC, McCorriston, Brillhart


Insurer's In-House Expert's Communications Are Privileged

    The Texas Supreme Court ruled that the insurer's in-house expert's draft reports and communications were privileged and need not be produced.  In Re City of Dickinson, Relator , 2019 Texas LEXIS 165 (Tex. Feb. 15, 2019).     The City of Dickinson had a commercial windstorm policy with the Texas Windstorm Insurance Association. The City suffered property damage caused by Hurricane Ike. Coverage was denied and the City sued.     The City moved for summary judgment on the issue of causation. In...
Tags: Texas, Insurance, Dickinson, Strickland, Texas Supreme Court, Hurricane Ike, Tred Eyerly, Expert Witnesses, Texas Windstorm Insurance Association The City, Texas Windstorm, Paul Strickland, Texas Windstorm The City


Cross Motions on Coverage for Collapse Denied

   Cross-motions for summary judgment designed to determine coverage for the Church’s collapse claim were both denied. Bethel Missionary Baptist Church v. S. Must. Church Ins. Co ., 2019 U. S. Dist. LEXIS 24705 (W. D. N. C. Feb. 15, 2019).     The Church sought summary judgment on its claim for bad faith, arguing that the insurer denied the claim without knowing North Carolina law on court concurrent causation or partial collapse. The Church claimed that the insurer denied the claim without fol...
Tags: Church, Insurance, Collapse, North Carolina, Tred Eyerly, First Party Insurance, Bad Faith, Bethel Missionary Baptist Church, S Must Church Ins


Strict Definition of Collapse Bars Coverage

    The policy's requirement that collapse constitute an abrupt falling down of the building barred coverage for the homeowner.  Marigliani v. Citizens Ins. Co. of Am. , 2019 Conn. Super. LEXIS 137 (Conn Super. Ct. Feb. 1, 2019).     The plaintiffs' hoe was built in 1985 and they purchased it in 2001. A home inspection revealed normal settlement cracks in the basement wall. From 2001 on, plaintiffs did not notice any cracks in the basement walls until 2014. Thereafter, they noticed horizontal cr...
Tags: Insurance, Collapse, Citizens, Travelers, Tred Eyerly, First Party Insurance, Marigliani, Citizens Ins Co


Excess Has No Duty To Indemnify Based Upon Primary Policy's Exclusions

    Based upon the primary policy's exclusion, the following form excess policy had no duty to indemnify after the insured reached a settlement in the underlying case.  Houston Cas. Co. v. Strata Corp. , 2019 U.S. App. LEXIS 3936 (8th Cir. Feb. 6, 2019).     An employee of Strata fell to his death at a Montana mine. The estate sued, alleging that Strata's intentional failure to maintain a safe workplace triggered an exception to the Workers' Compensation Act, giving the estate a cause of action ...
Tags: Montana, Insurance, Houston, Liberty Mutual, Eighth Circuit, Strata, Tred Eyerly, Excess Coverage, Duty to Indemnify, Houston Cas Co, Strata Corp, Strata Strata, Houston Casualty Company, Strata Houston Casualty, Houston Casualty


Trapped Squirrel Causing Electrical Arc Equals No Coverage

    The Supreme Court of Iowa agreed the city had no coverage for damage to its property after a squirrel triggered an electrical arc.  City of W. Liberty v. Employers Mut. Cas. Co. , 2019 Iowa Sup. LEXIS 6 (Feb. 1, 2019).      A squirrel climbed on to an electrical transformer at West Liberty's power plant. While touching a ground steel frame, the squirrel came into contact with a bare cable clamp that carried 7200 volts of electricity. This contact created a conductive path between the clamp a...
Tags: Insurance, Liberty, EMC, Feb, Iowa Supreme Court, Tred Eyerly, First Party Insurance, All-Risk Policy, Supreme Court of Iowa, Employers Mut Cas Co, West Liberty, Iowa Sup LEXIS, Mutual Casualty Company EMC


Exhaustion of Primary Policy Triggers Excess Coverage

    The Ninth Circuit affirmed the district court's ruling that the excess policy was triggered by settlements exhausting the primary policy.  Westport Ins. Corp. v. California Cas. Management Company , 2019 U.S. App. LEXIS 4889 (9th Cir. Feb. 20, 2019).      Doe 1, Doe 2 and Doe 3 filed suit against the insured, Moraga School District, and three of its administrators for alleged sexual abuse by a teacher. The District was insured under primary general liability policies from 1991 through 1997. ...
Tags: Insurance, DOE, Westport, District, Ninth Circuit, Tred Eyerly, Excess Coverage, Allocation, Damon Key, Mark Murakami, Association of California School Administrators, California Casualty, Westport Ins Corp, California Cas Management Company, Moraga School District, Westport Westport


Cross Motions on Coverage for Collapse Denied

   Cross-motions for summary judgment designed to determine coverage for the Church’s collapse claim were denied. Bethel Missionary Baptist Church v. S. Must. Church Ins. Co., 2019 U. S. Dust. LEXIS 24705 (W. D. N. C. Feb. 15, 2019).     The Church sought summary judgment on its claim for bad faith, arguing that the insurer denied the claim without knowing North Xarolina law on court concurrent causation or partial collapse. The Church claimed that the insurer denied the claim without following ...
Tags: Church, Insurance, Tred Eyerly, CHRCH, Bethel Missionary Baptist Church, S Must Church Ins, North Xarolina


Liability Cap Does Not Exclude Defense Costs for Loss Related to Deep Water Horizon

    The Texas Supreme Court found that Lloyd's endorsement imposing a cap on liability for a joint venture did not exclude coverage for defense costs.  Anadarko Petroleum Corp. v. Houston Cas. Co. et al. , 2019 Texas LEXIS 53 (Texas Jan. 25 2019j.     Pursuant to a joint venture agreement, Anadarko held a 25% ownership interest in the Macondo Well in the Gulf of Mexico. When the well blew out, numerous third parties filed claims against BP entities and Anadarko. Many of the claims were consolida...
Tags: Texas, Insurance, Bp, Deepwater Horizon, Gulf of Mexico, Gulf Oil Spill, Joint Venture, Lloyd, Anadarko, Texas Supreme Court, Anadarko Petroleum Corp, Duty to Defend, Tred Eyerly, Excess Coverage, Houston Cas Co, Macondo Well


Liabililty Cap Does Not Exclude Defense Costs for Loss Related to Deep Water Horizen

    The Texas Supreme Court found that Lloyd's endorsement imposing a cap on liability for a joint venture did not exclude coverage for defense costs.  Anadarko Petroleum Corp. v. Houston Cas. Co. et al. , 2019 Texas LEXIS 53 (Texas Jan. 25 2019j.     Pursuant to a joint venture agreement, Anadarko held a 25% ownership interest in the Macondo Well in the Gulf of Mexico. When the well blew out, numerous third parties filed claims against BP entities and Anadarko. Many of the claims were consolida...
Tags: Texas, Insurance, Bp, Deepwater Horizon, Gulf of Mexico, Gulf Oil Spill, Joint Venture, Lloyd, Anadarko, Texas Supreme Court, Anadarko Petroleum Corp, Duty to Defend, Tred Eyerly, Excess Coverage, Houston Cas Co, Macondo Well


Consequential Damage Claims for Insurer's Bad Faith Dismissed

    Partial dismissal of the insured's complaint seeking consequential damages for the insurer's bad faith was granted by the court.  Bryant v. General Cas. Co. , 2019 U.S. Dist. LEXIS 15369 (N.D. N.Y. Jan. 30, 2019).     Bryant purchased from General Casualty Company of Wisconsin (GCCW) a commercial property and casualty policy to cover the insured premises. While the building was rented to a tenant who operated a restaurant, it sustained a collapse. GCCW refused to cover the loss. Bryant sued....
Tags: Insurance, Collapse, Bryant, Tred Eyerly, Bad Faith, General Cas Co, General Casualty Company of Wisconsin GCCW, GCCW


Sorting Insurers' Obligations in Light of Competing Other Insurance Provisions

    The court determined that the non-participating insurer must reimburse the insurer who defended.  Steadfast Ins. Co. v. Greenwich Ins. Co. , 2019 Wisc. LEXIS 9 (Wis. Jan. 25, 2019).      Historic rains hit Milwaukee in June 2008, overwhelming the Milwaukee Metropolitan Sewage District's (MMSD) sewage system. Raw sewage backed up into 8,000 homes. Lawsuits were filed against MMSD and two companies who MMSD contracted with the operate and maintain the sewage system, Veolia Water Milwaukee ...
Tags: Milwaukee, Insurance, Greenwich, Veolia, Wisconsin Supreme Court, MMSD, United Water, Comprehensive General Liability, Tred Eyerly, Attorneys' Fees, Other Insurance, Steadfast, Subrogation, Steadfast Ins Co, Greenwich Ins Co, Milwaukee Metropolitan Sewage District


Business Risk Exclusions (j) 5 and (j) 6 Found Ambiguous

    Reversing the district court's grant of summary judgment in favor of the insurer, the Tenth Circuit found that exclusions (j) 5 and (j) 6 were ambiguous as applied to the facts of the case.  MTI, Inc. v. Emplrs. Ins. Co. , 2019 U.S. App. LEXIS 2543 (10th Cir. Jan. 25, 2019).     Western Farmers Electrical Cooperative (WFEC) owned cooling towers which were serviced by MTI, Inc. Wausau provided a CGL policy to MTI.      in 2011, MTI found that anchor bolts in Cooling Tower 1 were corroded. WFE...
Tags: Insurance, MTI, Wausau, Tenth Circuit, Comprehensive General Liability, Tred Eyerly, Business Risk Exclusions, MTI Inc, Emplrs Ins, Western Farmers Electrical Cooperative WFEC, MTI Inc Wausau, WFEC


Insured's Complaint for Breach of Contract and Bad Faith Adequately Pleads Consequential Damages

    The appellate court overturned the trial court's dismissal of the insured's complaint seeking consequential damages.  D.K. Prop. Inc. v. Nat'l Union Fire Ins. Co. of Pittsburgh v, Pa. , 2019 N.Y. App. Div. LEXIS 329 (N.Y. App. Div. Jan. 17, 2019).      The insured's building began to shift and exhibit structural damage, including cracks, after construction began in an adjoining building. The insured submitted a claim under its commercial insurance policy. The insurer did not pay the claim, n...
Tags: Insurance, Tred Eyerly, First Party Insurance, D K Prop Inc, Nat l Union Fire Ins Co of Pittsburgh


Coverage for Climate Change

Presentation at ABA’s Insurance Coverage Litigation Seminar on coverage for climate change in Tucson this morning. My co-panelists were Rina Carmel and Karin Aldama  it was our fifth year of presenting together. [Author: Tred Eyerly]
Tags: Climate Change, Insurance, Aba, Tucson, Tred Eyerly, Karin Aldama, Rina Carmel


Finding of No Coverage Overturned Due to Lack of Actual Policy

    The Appellate Division overturned a verdict for the insurer when the actual policy was never introduced at trial.  Pennsylvania Lumbermens  Mut. Ins. Co. v. B&F Land Dev. Corp. , 2019 N.Y. App. Div. LEXIS 264 (N.Y. App. Div. Jan 16, 2018).      The decedent was killed when he fell through a skylight while working on a premises owned by B&F Land Development Corporation. The estate sued B&F for wrongful death.     B&F tendered to its carrier, Pennsylvania Lumbermens Mutual (PLM). PLM issued a ...
Tags: Insurance, PLM, Appellate Division, Santoro, Comprehensive General Liability, Tred Eyerly, Pennsylvania Lumbermens Mut Ins Co, Pennsylvania Lumbermens Mutual PLM PLM, Francis Santoro


Suit Limitation Provision Upheld

    The policy's one year suit limitation provision was upheld, depriving insureds of benefits under the policy.  Oswald v. South Central Mut. Ins. Co. , 2018 Minn. App. Unpub. LEXIS 1077 (Dec. 24, 2018).      The Oswalds' hog barn burned down on June 21, 2016. Arson was a possible cause.      The Oswalds were insured under a combination policy issued by North Star Mutual Insurance Company and South Central Mutual Insurance Company. Central provided coverage for basic perils, broad perils, and l...
Tags: Insurance, North Star, Equitable, Oswald, Tred Eyerly, First Party Insurance, South Central Mut Ins Co, Oswalds


Exclusion Used to Deny Claim for Cyber Fraud Found Ambiguous

    The policy's false pretense exclusion relied upon the insurer to deny coverage for an act of cyber fraud was found ambiguous. Rainforest C hocolate v. Sentinel Ins. Co. , 2018 VT LEXIS 140 (Vt. Dec. 28, 2018).     Rainforest Chocolate, LLC was insured under a business-owner policy issued by Sentinel. In May 2016, a Rainforest employee received an email purportedly from his manager, directing the employee to transfer $19,875 to an outside bank account through an electronic-funds transfer. Aft...
Tags: Insurance, Rainforest, Computer Fraud, Vermont Supreme Court, Montana Supreme Court, Sentinel, Tred Eyerly, Cyber Risk, Sentinel Ins, Rainforest Chocolate LLC, Sentinel Sentinel, False Pretense Exclusion, Ad Advert Design Inc


Excess Insurer Must Indemnify for Sexual Abuse Claims

    Affirming the district court, the Second Circuit agreed that the excess insurer had a duty to indemnify the insured for sexual abuse claims.  Hartford Roman Catholic Diocesan Corp. v. Interstate Fire & Cas. Co. , 905 F.3d 84 (2nd Cir. 2018).     The Archdiocese had excess policies form Interstate between September 1, 1978 and September 1, 1983. The Archdiocese had underlying policies with Lloyds and Centennial Insurance Company. Interstate provided the second layer of excess coverage, follow...
Tags: Court, Insurance, Lloyds, Interstate, Second Circuit, The Archdiocese, Comprehensive General Liability, Tred Eyerly, Duty to Indemnify, Archdiocese, St Luke Institute, Hartford Roman Catholic Diocesan Corp, Interstate Fire Cas Co, Centennial Insurance Company Interstate, Archdiocese Even Interstate, House of Affirmation


No Coverage for Defects in Subcontrator's Own Work

    Damage to the concrete floor installed by the insured subcontractor was not property damage and thus not covered under the insured's CGL policy.  Kalman Floor Co. v. Old Republic Gen. Ins. Corp. , 2019 U.S. Dist. LEXIS 3319 (D. Colo Jan. 8, 2019).      In 2007, Kalman Floor Co. was subcontracted to construct over 158,000 square feet of concrete flooring for a cold storage facility. The concrete floor was completed in late 2008. In late 2009, the contractor notified Kalman that pockmarks, or ...
Tags: Insurance, Kalman, Nat, Old Republic, Construction Defects, Duty to Defend, Tred Eyerly, Business Risk Exclusions, CGL, Occurrence, Subcontrator, Kalman Floor Co, Old Republic Gen Ins Corp, Greystone Const Inc


Confusion in Renewing Policy Leads to Coverage

    The court determined the insurer must defend after confusion arose in renewal of the insured's policy.  Nat'l Fire & Marine Ins. Co. v. Infini PLC , 2019 U.S. Dist. LEXIS 1052 (D. Ariz. Jan 3, 2019).     The insured, Infini, was insured by Lexington Insurance Company for medical procedures it performed. Wells Fargo Insurance Services was Infini's broker. On July 24, 2014, Well Fargo sent a renewal application to Infini. Several weeks later, Infini returned the application after crossing out ...
Tags: Insurance, Fargo, Wells Fargo, Willis, Lexington, Duty to Defend, Tred Eyerly, Bad Faith, Lexington Insurance Company, Donna Willis, Infini, Nat l Fire Marine Ins Co, Infini PLC, Wells Fargo Insurance Services, Infini Lexington


Tucson ABA Insurance Coverage Seminar Coming Soon

    The dates for this year's ABA Insurance Coverage Litigation Committee CLE Seminar in Tucson are February 27 to March 2, 2019. Again this year, the seminar promises to provide cutting edge CLE programming and many networking opportunities. I will be on a panel addressing "Changing Climate, Changing Risks and Policies," with my esteemed colleagues, Rina Carmel, Esq., Karin S. Aldama, Esq., and Demetrius E. Rush, Esq.     Registration information is here. If you have any interest in coverage is...
Tags: Insurance, Aba, Administrative, Tucson, Tred Eyerly, Rina Carmel Esq Karin S Aldama Esq


Insurer Must Defend Subcontractor For Claims Alleging Faulty Workmanship

    Interpreting Florida law, the federal district court found that the insurer must defend the subcontractor for claims based upon faulty workmanship.  S. Owners Ins. Co. v. Gallo Bldg. Servs. , 2018 U.S. Dist. LEXIS 212961 (M.D. Fla. Dec. 18, 2018).     Gallo Building Services entered a subcontract with KB Homes, developer, related to the construction of a condominium project. All of the work was subcontracted by KB Homes to subcontractors, suppliers and material men. After completion of the p...
Tags: Florida, Insurance, Fla, Gallo, Construction Defects, Duty to Defend, Tred Eyerly, Business Risk Exclusions, Condominium Association, Occurrence, KB Homes, S Owners Ins Co, Gallo Building Services, Southern Owners Insurance Company, Gallo Gallo, Nevertheless Southern


Insured May Recover Consequential Damages From Insurer’s Breach of Duty to Defend

   Answering a certified question, the Nevada Supreme Court determined that an insurer breaching its duty to defend may be liable for consequential damages caused to the insured. Century Sur. Co. c. Andrew , 2018 Nev. LEXIS 112 (Nev. Dec. 13, 2018).     Michael Vasquez struck a minor, causing significant brain injury. Vasquez used the truck for personal use as well as for his mobile auto detailing business, Blue Streak. Vasquez was covered by a personal auto policy issued by Progressive. The po...
Tags: Insurance, Progressive, Andrew, Nevada Supreme Court, Vasquez, Michael Vasquez, Duty to Defend, Tred Eyerly, Bad Faith, CGL, Blue Streak, Century Sur Co, Century Surety Company, Century Surety, Vasquez Blue Streak, Blue Streak and Blue Streak