In BonBeck Parker, LLC v. Travelers Indemnity Co. of America, 14 F.4th 1169 (10th Circ. 2021) the Court held that the Travelers’ policy permitted either party to request an appraisal on “the amount of loss,” which was a phrase with an ordinary meaning in the insurance...
Firm News
THE SPLIT LANDSCAPE REGARDING DEPRECIATION OF LABOR COSTS WHEN CALCULATING ACTUAL CASH VALUE by Jordan R. Plitt
Courts are split on the question of whether it is permissible to depreciate labor costs when determining actual cash value (“ACV”). The Illinois Supreme Court’s decision in Sproull v. State Farm Fire and Casualty Co., 184 NE 3d 203 (Ill. 9/23/21), affirming the...
CALIFORNIA COURT OF APPEALS REFUSES TO EXPAND THE TRIGGER FOR WHEN “CUMIS” COUNSEL IS REQUIRED UNDER CALIFORNIA CIVIL CODE §2860 by Jordan R. Plitt
Under California Civil Code §2860 (hereafter, “§2860”), insureds have a right to obtain independent counsel at the insurer’s expense whenever there are competing interests that create an ethical conflict for the insurer-appointed counsel. Since enactment, the...
DOES A WATER-BACKUP EXCLUSION INCLUDE SEWAGE? by Jordan R. Plitt
Standard property policies typically contain an exclusion which provides that the insurer “will not pay for loss or damage caused directly or indirectly by . . . water that backs up or overflows from a sewer, drain, or sump.” A reasonable reading of that language...
OREGON COURT LIMITS SCOPE OF TRI-PARTITE RELATIONSHIP by Jordan R. Plitt
An Oregon District Court in Thompson v. Dennis Widmer Construction, Inc., 2021 WL 5235974 (D. Or., November 10, 2021) limited the insurance company’s ability to access defense counsel’s complete defense file through the tri-partite relationship. The case involved the...
CALIFORNIA COURT FINDS THAT A SUBJECTIVE STANDARD APPLIES TO AN INSURER’S PRIOR KNOWLEDGE PROVISION
Attorney errors and omissions policies universally contain a prior knowledge clause which precludes coverage for claims made during the policy period if, before the inception of the policy, the attorney had knowledge of the “actual alleged negligent act, error, or...
STEPPING DOWN INTO FELONY FLIGHT
Recently, the South Carolina Supreme Court held that a “step-down” clause within an automobile liability policy was void. In Nationwide Mutual Fire Insurance Co. v. Walls, _____ S.E.2d _____, 2021 WL 908511 (S.C. 2021) the insured was in the process of committing a...
TEXAS SUPREME COURT RULES THAT DECLARATORY JUDGMENT ACTION CAN BE USED TO ESTABLISH ENTITLEMENT TO UIM BENEFIT
In Allstate Insurance Co. v. Irwin, _____ S.W.3d _____, 64 Texas Sup. Court Justice 1058, 2021 WL 2021446 (Texas, 5/21/21), the Texas Supreme Court affirmed an award entered in a declaratory judgment action, finding that entitlement to UIM benefits could be...
Escape Clauses Within A Garage Policy Held To Be Void Under New Jersey Law
In Higgins v. Aguilar, 246 N.J. 75, 248 A.3d 1213 (N.J. 2021), Federal Insurance Company insured a car dealership with $1 million of liability coverage for the dealership vehicles. The Federal policy purportedly extended liability coverage to customers using dealer...
Step Down For Crime
The South Carolina Supreme Court recently considered an automobile policy stepdown clause in relationship to criminal misconduct. In Nationwide Mutual Fire Insurance Co. v. Walls, 433 S.C. 206, 858 S.E.2d 150 (S.C. 2021) an automobile accident occurred as a result of...