In Travelers' Property Cas. Co. of America v. Stresscon Corp., 370 P.3d 140 (Colo. 2016), the Colorado Supreme Court held that an insured contractor's settlement for a bodily injury claim that arose on a construction site where the subcontractor was working, without...
Insurance Law
The Montana Supreme Court Brings Clarity to the Meaning of “Accident” in a CGL Policy’s Occurrence Definition
In Employers Mutual Cas. Co. v. Fisher Builders, Inc., 383 Mont. 187, 371 P.3d 375 (2016), the Montana Supreme Court was called upon to interpret the term "accident" in a CGL policy's "occurrence" definition. The Court found that the term "accident" could include...
Ordinance Or Law Coverage Must Pertain To The Claimed Loss For Coverage Attachment
The New York Court in St. George Tower v. Insurance Co. of Greater New York, 139 A.D.3d 200, 30 N.Y.S.3d 60 (N.Y.A.D. 1st Dept. 2016), was called upon to consider whether an insurance policy's ordinance or law endorsement provided coverage where a water loss claim...
Two Wrongs Don’t Make It Right
In an interesting case, the New York Appellate Court found that an insured could not sue the insurance broker for delaying in presenting a claim to the insurance company when the insured also delayed submission of the claim to the agent. In Rockland Exposition, Inc....
The Fourth Circuit Court Of Appeals Finds That Late Notice Must Deprive The Insurance Company Of Its Ability To Exercise Its Meaningful Contractual Rights In Order To Establish Prejudice
The United States Fourth Circuit Court of Appeals, interpreting Maryland law, recently clarified the meaning and scope of "prejudice" under Maryland law. St. Paul Mercury Ins. Co. v. American Bank Holdings, Inc., 819 F.3d 728 (4th Cir. 2016). In this case, the...
Can Speculation Fuel a Defense Obligation Under the Insurance Policy? The Montana Supreme Court Says That it Cannot.
Recently the Montana Supreme Court held that a duty to defend cannot be based on pure speculation regarding unpleaded claims. In Fire Ins. Exchange v. Weitzel, 2016 MT 113, 371 P.3d 457 (Mont. 2016), the elder abuse complaint framed 19 causes of action all of which...
Robocalls Are Covered By CGL Policy According To Florida Court
The Florida Court of Appeals in Old Dominion Ins. Co. v. Stellar Concepts & Design, Inc., 189 So.3d 293 (Fla. App. 2016) held that a CGL policy covered liability for the insured's placing robocalls in violation of state law. The Court found that the policy's...
The California Supreme Court Finds That In Determining Whether A Punitive Damage Award Is Unconstitutionally Excessive, The Court Could Take Into Consideration As The Compensatory Damage Component In An Insurance Bad Faith Case The Award Of Attorney’s Fee
In a well-reasoned decision, the California Supreme Court held in Nickerson v. Stonebridge Life Ins. Co., 63 Cal.4th 363, 203 Cal.Rptr.3d 23, 371 P.3d 242, (2016), that a trial court could give consideration to an award of attorney's fees in favor of the insured, in a...
When Things Change, Re-Evaluate
In a fact intensive decision, the United States Eighth Circuit Court of Appeals in Bamford, Inc. v. Regent Ins. Co., 822 F.3d 403 (8th Cir. 2016), held that a fact question existed as to the insurance company's failure to settle a claim notwithstanding that the...
Limiting the Scope of Ambiguity
Recently the Colorado Supreme Court in American Family Mutual Ins. Co. v. Hansen, 2016 WL 3398507 (Colo., filed 6/20/16) considered whether an extrinsic document, separate and apart from the insurance policy, could be used to create a policy ambiguity. The Court held...