The Supreme Courts of Washington and South Carolina have rejected business interruption coverage for Covid-19 related lawsuits, as well as the 7th Circuit U.S. Court of Appeals. In Hill and Stout, PLLC v. Mutual of Eunumclaw Insurance Co., 515 P.3d 525 (Wash. 2022),...
Firm News
IME DOCTOR NOT RESPONSIBLE FOR CLAIM DELAY
In Kirk v. Anderson, 2021 UT 41, 496 P.3d 66 (Utah, August 5, 2021), the Utah Court held that an IME doctor who performed an IME regarding workers compensation benefits did no have a duty to not contribute to delaying the claim benefits. In this case, the injured...
NEW COVID COVERAGE CASES JOINING THE MAJORITY VIEW
In Hartford Fire Co. v. Moda, LLC, 346 Conn. 64, 288 A.3d 206 (Conn. 2023), the Connecticut Supreme Court held in favor of the insurance company against a claim that the insured’s inventory had become outdated and thereby unmarketable while sitting in warehouses...
GIVING PEDICURES CONSTITUTES A PROFESSIONAL SERVICE WITHIN THE SCOPE OF A PROFESSIONAL SERVICES EXCLUSION
The appellate division of the New York Supreme Court held in Walker v. Erie Insurance Co., 210 A.D.3d 1375, 178 N.Y.S.3d 650 (NY App. Div. 11/10/22) that giving a pedicure fell within the scope of the policy’s professional services exclusion. The professional...
ABSOLUTE POLLUTION EXCLUSION PREVAILS
In Central Crude, Inc. v. Liberty Mutual Insurance Co., 51 F.4th 648 (5th Cir. 2022), the Court found that an absolute pollution exclusion precluded coverage for a claim involving the cost of cleaning up an oil spill on the insured’s property when the evidence...
POST-LOSS ASSIGNMENT CLAUSE FOUND AMBIGUOUS
The New Hampshire Supreme Court in Keene Auto Body, Inc. v. State Farm Mutual Auto Insurance Co., 293 A.3d 1146 (NH 11/15/22) held that an insurance policy’s anti-assignment clause which precluded assignment of any benefits under the policy without State Farm’s...
TENTH CIRCUIT COURT OF APPEALS FINDS THAT INSURANCE POLICY’S APPRAISAL CLAUSE ALLOWS CAUSATION DETERMINATIONS by Jordan R. Plitt
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...
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...