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Top Developments – November 2022

SPOTLIGHT: Third Circuit Court of Appeals Affirms No Coverage for Sex Trafficking Claims - In Nautilus Insurance Co. v. Motel Management Services Inc., the Court of Appeals granted a motion for judgment on the pleadings...more

Fifth Circuit -- Damage to Property Beyond Insured’s Product/Work Not Precluded By ‘Your Product/Your Work Exclusion’

On January 11, 2022, the United States Court of Appeals for the Fifth Circuit issued its decision in Siplast, Incorporated v. Employers Mutual Casualty Company, 2022 U.S. App. LEXIS 795 (5th Cir. Jan. 11, 2022), finding that...more

Eleventh Circuit Finds No “Property Damage” Where Defective Component Failed to Cause Damage to Other Non-Defective Components

In Florida, damage caused by faulty workmanship constitutes “property damage;” however, the cost of repairing or removing defective work does not. Amerisure Mutual Insurance Company v. Auchter Company, 673 F.3d 1294 (11th...more

Eleventh Circuit Finds No Bad Faith Where Insurer Failed to Provide “Mirror-Image” Response to Claimant’s Demand

In Florida, an insurer is required to work diligently on the insured’s behalf to avoid an excess judgment, with the “same haste and precision as if it were in the insured’s shoes”. Harvey v. GEICO General Insurance Company,...more

Court Addresses When Duty to Defend Ends

There are certain generally held principles regarding an insurer’s duty to defend. One of these principles is that an insurer has a duty to defend its insured if the complaint states a claim that potentially falls within the...more

Illinois Appellate Court Clarifies What Is and Is Not an “Occurrence” in the Construction Defect Context

On December 31, 2019, the First District Illinois Appellate Court issued its decision in Owners Insurance Company v. Precision Painting & Decorating Corporation, clarifying what does and does not constitute “property damage”...more

PTSD May Be Covered As “Bodily Injury” If It Resulted From Physical Injuries, Pennsylvania Appeals Court Holds

It has long been the rule in Pennsylvania that a mental or psychological injury generally does not constitute “bodily injury,” as defined in most standard insurance policies, unless that mental or psychological injury results...more

Indiana Federal Court Holds No Coverage for $50M Default Judgment for Lack of Timely Notice of Class Action

In Greene v. Kenneth R. Will, a CGL insurer recently prevailed in a declaratory judgment action arising from an underlying class action alleging pollution and nuisance claims against the insured, VIM Recycling LLC, an...more

“Based On”… What Exactly? NJ Appellate Division Examines Phrase and Estops Insurer From Disclaiming Coverage for 20-Month Delay

On May 28, 2019, the New Jersey Superior Court, Appellate Division examined the phrase “based on” in an assault-and-battery exclusion, finding that the phrase means “to make, form, or serve as the foundation of any claim,...more

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