In 2013 the Washington Supreme Court found that an insurance company's claim file was presumptively not privileged in disputes between insurance companies and their insureds unless the insurance company could demonstrate that the attorney-client aspects of the file...
Firm News
TERMITE DAMAGE IS NOT THE FUNCTIONAL EQUIVALENT OF BUILDING COLLAPSE FOR PURPOSES OF FIRST-PARTY PROPERTY COVERAGE
The Kentucky Supreme Court recently found that the insurance company's homeowners policy did not cover termite damage that did not result in the home's collapse. In Thiel v. Kentucky Growers Insurance Co., 522 S.W.3d 198 (2017) the court concluded that the insured...
“MAY I?”
Where insurance policies require written consent from the insurer to enter into any settlement agreement, it is important to remember to ask, "May I?" Failure to do so may void coverage. That is what occurred recently in One West Bank, FSB v. Houston Casualty Co., 676...
Nebraska Supreme Court Finds That Insureds Can Assign Their Right To Receive Policy Proceeds After A Loss Has Occurred Notwithstanding The Policy’s Anti-Assignment Clause
In Mallard Gutter Co. v. Farm Bureau Property and Casualty Insurance Co., 295 Neb. 419, 2016 WL 7486374 (filed 12/30/16), the insured's home was damaged by a storm. In order to repair the storm damage, the insured brought in a roofing company, Millard Roofing and...
Allegations That The Insured Unlawfully Acquired And Resold Sprint Phones Did Not Constitute Product Disparagement
In Wireless Buybacks, LLC v. Hanover American Insurance Co., 223 F.Supp.3d 443 (2016) the court held that Hanover had no duty to defend its insured under its policy's coverage for product disparagement against allegations that the insured had unlawfully acquired and...
Timing is Everything
The West Virginia Supreme Court holds that when the insurance company is fulfilling its duty to defend, courts had no jurisdiction to adjudicate the bad faith claim.In State ex rel. Universal Underwriters Ins. Co. v. Wilson, 801 S.E.2d 216 (W.V. 217) the Supreme Court...
Minnesota Court Finds Insurer Could Not Rescind Policy Notwithstanding Insured’s Agent’s Knowledge of Her Own Embezzlement at Time of Application
In Minnesota insurers are entitled to rescind their insurance policy when an application contains a material misrepresentation that increases the risk of loss. In National Credit Union Administration Board v. Cumis Insurance Society, Inc., 241 F.Supp.3d 934 (D. Minn....
Oregon Court Upholds Suit Limitation Clause Where the Insurance Company Did Nothing to Prevent the Insureds From Suing in a Timely Fashion
In Brockway v. Allstate Property & Casualty Insurance Co., 284 Or. App. 83, 391 P.3d 871 (2017) the Oregon Court of Appeals upheld a suit limitation clause in Allstate's policy thereby upholding the dismissal of the insured's claim against Allstate. The Brockway...
Regular Use Exclusion Found To Apply To Borrowed Car According To The Maine Supreme Judicial Court
In Estate of Mason v. Amica Mutual Insurance Co., 158 A.3d 495 (2017) the Maine Supreme Judicial Court found that where a driver is authorized to use another's car as if it was her own, pending repair of her vehicle, the borrowed car was available for regular use and...
Rhode Island Supreme Court Finds That An Insured’s Malpractice Claim Against His Former Insurance Agent Was Untimely Because It Was Filed More Than Three Years After The Insured Received A Copy Of The Policy And Therefore Could Have Discovered The Alleged
In Faber v. McVay, 155 A.3d 153 (R.I. March 8, 2017) the Rhode Island Supreme Court held that an insurance agent malpractice claim was untimely because it was not filed within three years after the date upon which the plaintiff knew or should have known of the agent's...