News & Analysis as of

Commercial General Liability Policies Declaratory Judgments

Cozen O'Connor

Claims Notes: September 2024

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Litigation arose over whether a suit for misrepresentation and breach of contract arising out of an easement triggered a Commercial General Liability (CGL) insurer's duty to defend. Internal confidential communications...more

Carlton Fields

Fifth Circuit Clarifies Meaning of “Advertising Idea” in Personal and Advertising Injury Coverage Section of Standard CGL Policy

Carlton Fields on

In Princeton Excess & Surplus Lines Insurance Co. v. A.H.D. Houston Inc., the Fifth Circuit Court of Appeals clarified the meaning of the undefined term “advertising idea” in the insuring agreement of a commercial general...more

Houston Harbaugh, P.C.

Third Circuit Confirms No “Occurrence” Under Pennsylvania Law for Poor Workmanship in Fracking Claim

In a May 31, 2023, precedential decision, the United States Court of Appeals for the Third Circuit confirmed that under well-settled Pennsylvania law, claims of poor workmanship do not involve an “occurrence” required to...more

White and Williams LLP

Insurance Enters the Fray: Southern District of New York Finds Insurrectionary Intent Sufficient to Apply War Exclusion

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In a September 22, 2022 decision, the U.S. District Court for the Southern District of New York held a commercial general liability policy’s war and financial services exclusions barred coverage for a suit arising out of the...more

Kennedys

What one court giveth, a brother court taketh away: Thermoflex and 3 policy exclusions in the context of BIPA

Kennedys on

In Citizens Ins. Co. of Amer. v. Thermoflex Waukegan, LLC no. 20-05980 (N.D. Ill. Mar. 1, 2022), the United States District Court for the Northern District of Illinois rejected the application of three separate general...more

White and Williams LLP

North Carolina Federal Court Holds “Hazardous Materials” Exclusion Does Not Bar Duty to Defend Under CGL Policy for Bodily Injury...

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On October 19, 2020, the U.S. District Court for the Western District of North Carolina held that a “hazardous materials” exclusion contained in a CGL policy did not preclude a duty to defend the insured against claims...more

Cozen O'Connor

Insurer May Not Intervene Into Insured’s Construction Defect Trial To Seek Allocation of Damages

Cozen O'Connor on

In Builders Mut. Ins. Co. v. Island Pointe, LLC, No. 27970, 2020 S.C. LEXIS 68 (May 13, 2020), the South Carolina Supreme Court clarified that insurers are not required and, absent unusual circumstances...more

Mitchell, Williams, Selig, Gates & Woodyard,...

Absolute Pollution Exclusion/Quarry Operations: Federal Appellate Court Addresses Coverage for Unplanned Discharge of Rock Fines

The United States Court of Appeals for the Fifth Circuit (“Court”) addressed in a January 17th opinion a company’s umbrella insurance policy’s absolute pollution exclusion. See Eastern Concrete Materials, Inc., v. Ace...more

Bradley Arant Boult Cummings LLP

Fifth Circuit Decision Excluding Coverage under Pollution Exclusion for Damage to Stream Caused by Rock Fines

In a sweeping decision, the U.S. Court of Appeals for the Fifth Circuit extended the absolute pollution exclusion to the unplanned discharge of “rock fines,” pellets produced during quarry operations, and denied coverage for...more

White and Williams LLP

Pennsylvania Federal Court Holds Insurer Can’t Use Insured’s Admission to Withdraw Defense

It has long been the rule, under Pennsylvania law, that an insurer's duty to defend is determined "solely" by the allegations in the "four corners" of the complaint against the insured. Kvaerner Metals Div. of Kvaerner U.S.,...more

Carlton Fields

New York’s Highest Court Holds Untimely Disclosure Is Not an Untimely Disclaimer

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The defendant, Preferred Contractors Insurance Company Risk Retention Group LLC (PCIC), is a risk retention group charted in Montana and doing business in New York. PCIC issued a CGL policy naming defendant Nadkos Inc. as an...more

White and Williams LLP

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

Carlton Fields

A Lesson in Sticking to Your Guns: Court Reverses Course and Finds No Duty to Defend or Indemnify on a Motion for Reconsideration

Carlton Fields on

On May 1, 2019, the U.S. District Court for the Middle District of Georgia held that a firearms exclusion in a general liability insurance policy applied to bar coverage for an underlying action arising from a shooting at the...more

White and Williams LLP

District Court of Missouri Limits Whining About the Scope of Waiver of Subrogation Clauses in Wine Storage Agreements

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In Netherlands Ins. Co. v. Cellar Advisors, LLC, 2019 U.S. Dist. Lexis 10655 (E.D. Mo.), the United States District Court for the Eastern District of Missouri considered the scope of a waiver of subrogation clause in two wine...more

Maynard Nexsen

Declaratory Judgment Action Provides Reminder of Factors Considered by the Court in Assessing Coverage

Maynard Nexsen on

Owners Insurance Company issued a commercial general liability policy (CGL) to Cruz Accessories, a/k/a H&C Corp.(Cruz). The policy included standard language relating to Owners’ right and duty to defend Cruz, including the...more

Maynard Nexsen

Additional Insured Coverage and Primary/Excess Priority Disputes, Oh My

Maynard Nexsen on

Additional insured coverage in construction projects is one of the most vexing issues facing insurance coverage lawyers. Add to the complexity a priority dispute between primary and excess insurers and you have a recipe for...more

Maynard Nexsen

Can a Third Party Seek a Declaration of an Insurer's Duties Under Its Policy?

Maynard Nexsen on

“Be careful what you ask for in your declaratory judgment action” could have been an appropriate subtitle....more

Butler Weihmuller Katz Craig LLP

A Theoretical Safety on the Trigger of the Duty to Defend

The Eleventh Circuit of the United States Court of Appeals recently decided Selective Insurance Company of the Southeast v. William P. White Racing Stables, Inc., et al., 2017 WL 6368843 (December 13, 2017), a case addressing...more

Carlton Fields

CGL Policies And Data Breaches: No Publication, No Coverage

Carlton Fields on

As cyber hacking and phishing schemes become more common, one issue that is often raised is whether, and to what extent, damages resulting from these incidents fall within the coverage afforded under a standard commercial...more

Maynard Nexsen

When an Assault Really Is an Assault... A Sequel

Maynard Nexsen on

Jesse Bass was a guest at Henry’s Sports Bar in December 2012, when the bouncer struck him in the head with such force that he was knocked unconscious and suffered serious brain injury. Bass brought an action against Henry’s,...more

Carlton Fields

Reading the Crystal Ball: Reservation of Rights Letters under South Carolina Law in the Wake of Harleysville Group Insurance v....

Carlton Fields on

The South Carolina Supreme Court recently took a firm stance on what constitutes a sufficient reservation of rights letter in Harleysville Group Insurance v. Heritage Communities, Inc., et al., — S.E.2d — , No. 2013-001281,...more

McGuireWoods LLP

Fourth Circuit Affirms Denial of Coverage for Accidental Gunshot Injury

McGuireWoods LLP on

On April 14, the Fourth Circuit held that an insurer owed no defense or indemnity coverage for an underlying personal injury suit against the policyholder’s employee, a security guard who accidentally shot a friend while...more

Carlton Fields

Third Circuit Slams The Door On Coverage For The Cost of Defending Excluded Claims—Then Leaves It Wide Open

Carlton Fields on

An insured corporation settles a class action, and a portion of the settlement pays the plaintiffs’ attorneys. Payments to the class are excluded from coverage under the terms of the corporation’s liability policy. But can...more

Pullman & Comley, LLC

Ask the Public Adjustor: Covering Life with Wisdom*

Pullman & Comley, LLC on

I’ll come right out and admit it: I was a crasher at last night’s party. Though they helped me bluff my way in, every stitch of clothing I wore was borrowed, and the limo … it’s a long story, but let’s just say Uber. Then I...more

Carlton Fields

Third Circuit Decides that “Publication” Doesn’t Include the Collection of Customer Data

Carlton Fields on

On September 15, 2015, the Third Circuit Court of Appeals declared that Lamorak Insurance Company (formerly OneBeacon America Insurance Company) and the Hanover Insurance Group don’t have to defend their insureds, Urban...more

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