News & Analysis as of

Bad Faith Denial of Insurance Coverage Breach of Contract

Cozen O'Connor

A New Era for Extra-Contractual Damages in Oregon - What We Know and What We Are Learning Six Months Since Moody

Cozen O'Connor on

The start of 2024 marked the end of an insurance era in Oregon. On December 29, 2023—the last Friday before the new year—the Oregon Supreme Court issued its much-anticipated decision in Moody v. Oregon Community Credit Union,...more

Wiley Rein LLP

Second Circuit Affirms No Duty to Defend Claims Against Construction Firm Outside the Scope of Professional Liability Coverage

Wiley Rein LLP on

The United States Court of Appeals for the Second Circuit, applying New York law, has held that neither of two claims against an insured construction company fell within the scope of coverage under the company’s claims-made...more

Wiley Rein LLP

Insured Cannot Amend Complaint to Add Bad Faith Claim Where Coverage Issue is “Debatable”

Wiley Rein LLP on

Applying Minnesota law, the United States District Court for the District of Minnesota has denied an insured’s motion to amend its coverage litigation complaint to add a claim for bad faith, holding that coverage under the...more

Wiley Rein LLP

California Court Finds Insolvency Exclusion Ambiguous, Limits Application to Insolvency of Third Parties Other Than Claimant

Wiley Rein LLP on

A California federal district court, applying California law, has held that an insolvency exclusion in a bankers’ professional liability policy did not bar coverage for a lawsuit filed by a receiver against a bank, finding...more

Cozen O'Connor

Louisiana Federal Court Upholds Applicability of Anti-Concurrent Causation Exclusion for Hurricane Damage

Cozen O'Connor on

In a timely reaffirmation of the Fifth Circuit’s 2007 ruling in Leonard v. Nationwide Mut. Ins. Co., a Louisiana federal court recently upheld the application of an insurance policy’s Anti-Concurrent Causation Clause (“ACC”)...more

Cozen O'Connor

Reasonableness of Insurer’s Coverage Decision Determined by Evidence Available at Time of Decision

Cozen O'Connor on

The Eighth Circuit Court of Appeals recently held that, under Iowa law, an insurer is not liable for breach of contract or bad faith if its coverage decision was objectively reasonable at the time it was made. In Hallmark...more

Cozen O'Connor

A Consequential Ruling: Florida Supreme Court Rejects Recovery of Consequential Damages in First-Party Breach of Contract Actions

Cozen O'Connor on

In first-party breach of insurance contract actions, the parties oftentimes dispute whether the policyholder may seek damages that are not explicitly provided for in the policy, with the policyholder arguing such indirect...more

Rumberger | Kirk

Florida Supreme Court Rules Extra-Contractual, Consequential Damages Are Not Recoverable in a First-Party Breach of Contract...

Rumberger | Kirk on

On January 21, 2021, the Supreme Court of Florida issued an important decision in Citizens Property Insurance Corp. v. Manor House, LLC, et. al., SC19-1394 (Fla. 2021), disallowing an insured to recover extra-contractual,...more

Carlton Fields

A Case of Mass Listeria: Insurer’s Duty to Defend in New Jersey Contaminated Pizza Crusts Suit

Carlton Fields on

Last week, in Conte’s Pasta Co. v. Republic Franklin Insurance Co., a New Jersey federal court ruled that Republic Franklin Insurance Co. was obligated to indemnify Conte’s Pasta for the costs incurred defending against a...more

Carlton Fields

Years of Embezzlement Precluded From Coverage Under E&O Policy’s Commingling Exclusion

Carlton Fields on

A federal district court in North Dakota recently granted an insurer’s motion to dismiss in Campbell Property Management LLC v. Lloyd’s Syndicate 3624, finding that both prongs of a “commingling exclusion” to coverage...more

Hinshaw & Culbertson - Insights for Insurers

Chicago-Area Restaurants Seek Insurance Coverage for COVID-19 Business Interruption Losses in Illinois Federal Court

Restaurants are among the leading wave of business owners filing COVID-19-related business interruption coverage actions. Illinois is now the venue of one such suit...more

Carlton Fields

Not So Fast: Court Upholds Denial of Request for Accelerated Life Insurance Payment

Carlton Fields on

The Ninth Circuit recently affirmed a summary judgment ruling in favor of Minnesota Life Insurance Co. on all claims stemming from its denial of an accelerated life insurance payment. ...more

Hinshaw & Culbertson LLP

The LHD/ERISA Advisor: Ohio State Court Affirms Dismissal of Bad Faith and Punitive Damages Claim

In Shah v. Metropolitan Life Ins. Co., 2019 U.S. Dist. LEXIS 25695 (S.D. Ohio Feb. 19, 2019), the U.S. District Court for the Southern District of Ohio dismissed a plaintiff insured's bad faith and punitive damages claims...more

Robins Kaplan LLP

Empire State of Mind: New York Bad Faith Update

Robins Kaplan LLP on

WHILE THERE REMAINS NO BAD FAITH CAUSE OF ACTION IN NEW YORK, A RECENT APPELLATE DIVISION CASE OUT OF THE FIRST DEPARTMENT MAKES PLAIN THAT AN INSURED NEED NOT MEET A HEIGHTENED PLEADING STANDARD WITH RESPECT TO CONSEQUENTIAL...more

Payne & Fears

Pizza Hut Delivers a Win for Employers: Reimbursement Claims are Not Automatically Excluded from Coverage by a Policy's "Wage &...

Payne & Fears on

The California Court of Appeal recently ruled that a "wage and hour" exclusion in an employment practices liability insurance ("EPLI") policy must be narrowly interpreted to extend coverage for reimbursement claims brought...more

Spilman Thomas & Battle, PLLC

A Case to Watch: Brayman v. Westfield Insurance

Pennsylvania law suggests construction defects generally are not considered an "occurrence" under most CGL insurance policies because defects are not true accidents, e.g., a fortuitous event. However, an exception generally...more

Maynard Nexsen

Discovery - Be Careful Out There

Maynard Nexsen on

Discovery is a critical part of most cases. Some law firms have entire sections dedicated solely to discovery. Some attorneys enjoy the quest for more information while others find discovery to be the bane of their existence....more

Mayer Brown

Sixth Circuit Invalidates Tennessee’s Punitive-Damages Cap and Holds That Punitive Damages Are Available Under Tennessee Law For...

Mayer Brown on

Should divided panels of federal appellate courts really be deciding state-law issues of first impression? That’s what happened last month in Lindenberg v. Jackson National Life Insurance Co. In Lindenberg, two Sixth Circuit...more

Payne & Fears

Victory for Policyholders - An Insurer's Breach of the Duty to Defend Opens Up Policy Limits

Payne & Fears on

Insurance companies can no longer breach the duty to defend believing that, as long as they act in good faith, their potential liability is capped at policy limits or any costs incurred by the insured in mounting a defense....more

Butler Snow LLP

Bad Faith Insurance Defense and Reliance on Advice of Counsel

Butler Snow LLP on

In Mississippi, for a plaintiff to recover punitive damages against an insurance company for bad faith refusal to pay a claim or to fulfill an obligation existing under the terms of an insurance policy, the insured must be...more

Carlton Fields

South Carolina Federal Court Denies Motion to Stay and Orders Insurer to Produce Documents

Carlton Fields on

The background of this case is as follows. In 2014, ContraVest Inc., ContraVest Construction Co., and Plantation Point Horizontal Property Regime Owners Association Inc. (collectively, “Plaintiffs”) brought suit in South...more

Bradley Arant Boult Cummings LLP

$25.5 Million Oklahoma Verdict: Jackpot Justice or Case Study on Bad Faith Litigation?

We all know how prevalent bad faith claims are. It seems like almost every case involving disputed policy benefits includes one. Many have no merit and should be disposed of on summary judgment. The rest, however, arguably...more

Cozen O'Connor

Fort Worth Court of Appeal Reverses Judgment Awarding Bad Faith Damages Against Insurer

Cozen O'Connor on

While the November 8, 2018 Court of Appeal of Texas, Fort Worth Division opinion reverses a trial court’s judgment on grounds of legal insufficiency and standing, the court’s analysis and application of current Texas bad...more

Saul Ewing LLP

Insurer's Failure to Conduct a "Proper Forensic Investigation" Before Denying Coverage for Destroyed Poultry House Not Bad Faith

Saul Ewing LLP on

After heavy snow destroyed a Slaubaugh Farm poultry house in Delaware, the farm called on its insurer to cover its loss. After its claim was denied, the farm sued the insurer, alleging bad faith denial of coverage under...more

Robinson+Cole Property Insurance Coverage...

District of New Jersey Finds Post-Denial Communications By Insurer’s Counsel Insufficient to Sustain Bad Faith Claim

Under New Jersey law, an insurer cannot be held liable for bad faith in denying an insurance claim if the claim is “fairly debatable.”...more

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