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Denial of Insurance Coverage Insurance Claims Appellate Courts

Wiley Rein LLP

Eleventh Circuit Applies Notice-Prejudice Rule But Insured’s Failure to Timely Notify Insurer Bars Coverage for Pollution Claims

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The Eleventh Circuit Court of Appeals, applying Florida law, held that an insurer could deny coverage for failure to provide timely notice where the insured provided no evidence to rebut the presumption of prejudice to the...more

Lowenstein Sandler LLP

Ambiguities Bite Back: Second Circuit Reaffirms Commitment to Construing Ambiguous Terms in Favor of Coverage

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The Second Circuit’s recent decision affirming a $54.2 million recovery for CITGO signals the judiciary’s renewed commitment to a bedrock principle of insurance law: Ambiguous policy language must be construed in favor of...more

Robinson & Cole LLP

Missouri Court of Appeals Finds No Duty to Defend or Indemnify in Class Action Involving Environmental Contamination Beginning in...

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A recent Missouri Court of Appeals decision provides helpful precedent for liability insurers facing legacy environmental claims and class actions. The court strictly construed the policy period, concluding that claims based...more

Freeman Mathis & Gary

Kentucky Court of Appeals soft launches a hard change to proximate cause

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In Jena Lhotsky v. Guy Sutcliffe, No. 2024-CA-1521-MR (Ky. Ct. App. Oct. 17, 2025), a recently published opinion, the Kentucky Court of Appeals proposed a substantial change to how courts across the Commonwealth analyze...more

Husch Blackwell LLP

Second Circuit Affirms $54 Million Judgment for Loss "Arising From" Insurrection

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In CITGO Petroleum v. Ascot Underwriting Limited, et al., Case No. 24-227 (2d Cir. 2025), the U.S. Court of Appeals for the Second Circuit recently affirmed a $54.2 million judgment (plus interest) in favor of CITGO Petroleum...more

Carlton Fields

Eleventh Circuit Clarifies Notice Requirements Under Claims-Made Policy

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The Eleventh Circuit Court of Appeals affirmed summary judgment in favor of Nautilus Insurance Co. in L. Squared Industries Inc. v. Nautilus Insurance Co., holding that an insured’s failure to provide timely notice of a...more

Cozen O'Connor

Claims Notes: October 2025

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R&B artist Chris Brown, through his company Tattooed Millionaire Entertainment (TME), owned a music studio and equipment in Memphis. Brown is TME’s sole owner. After a break-in and arson damaged the studio and gear, the...more

Wiley Rein LLP

Prior Acts Exclusion Dooms Company’s Bid for D&O Coverage

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The Supreme Court of Delaware, applying Delaware law, has held that certain allegations in an underlying complaint did not constitute a separate “Claim” against an insured under the D&O policies at issue. Origis USA LLC v....more

Marshall Dennehey

Appellate Court Rules Homeowner Adequately Alleged Breach of Contract After Insurance Carrier Denied Windstorm Claim

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Ronald Zabriskie v. First Protective Insurance Company d/b/a Frontline Insurance Company, Fla. 5th DCA, No. 5D2024-1072, LT Case No. 2022-CA-685, June 13, 2025 - The appellate court reversed a trial court’s dismissal of a...more

Marshall Dennehey

Florida Court Upholds Denial of Late Hurricane Claim, Reinforcing Prompt Notice Requirement

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Morales v. Citizens Property Insurance Corporation, Fla. 3d DCA, No. 3D24-0096, LT Case No. 20-25161, August 6, 2025 - In August, the Third District Court of Appeal in Miami upheld a summary judgment in favor of the insurance...more

Marshall Dennehey

Second District Court of Appeal Finds Carriers Cannot Limit Damages to Actual Cost Value at the Trial Involving a Denied Claim

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Richard Brito and Pamela Garcia f/k/a Juana Tejada v. Citizens v. Citizens Property Insurance Corporation, Fla. 2nd DCA, No. 2D2024-0664, June 18, 2025 - The carrier provided a homeowner’s policy to the insureds that provided...more

Rivkin Radler LLP

September 2025 Insurance Update

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Jealous husbands, protection payments, defective earplugs, opioids, and abuse of process form the backdrop to our September Insurance Update. We begin with two cases from Delaware’s high court. The first reaffirms...more

Phelps Dunbar

Texas Supreme Court Victory for UM/UIM Insurers Faces Possible Reversal

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In April, the Texas Supreme Court set a favorable precedent for Uninsured and Underinsured (UM/UIM) insurers when it held that an insured seeking to recover UM/UIM benefits must secure a judgment to establish the UM/UIM...more

Wiley Rein LLP

Post-Termination Correspondence between Insured and its Former Officer Did Not Constitute a “Claim”

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The United States Court of Appeals for the Eleventh Circuit, applying Florida law, has held that letters from an insured company explaining the basis for termination of its CEO and President and requesting that he preserve...more

Quinn Emanuel

The White Collar Appeal: Second Circuit Holds That Judges Can’t Increase Sentences to Offset Reductions from the First Step Act or...

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In a case of first impression in the federal Courts of Appeals, the Second Circuit held that district courts may not consider a defendant’s potential eligibility for a sentence reduction under the First Step Act or programs...more

Pillsbury - Policyholder Pulse blog

California Appeals Court Reinforces that Insurer Failure to Investigate Potential Bases for Coverage Outside the Pleadings Can...

In the recently published case Bartel v. Chicago Title Insurance Company, a California appellate court reaffirmed longstanding California law on insurers’ broad duty to defend even in the face of complicated underlying facts,...more

Carlton Fields

New Mexico Appeals Court Holds No Bad Faith for Shooting Claim Precluded by GL Policy’s A&B Exclusion

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In Wilson v. Cincinnati Specialty Underwriters Insurance Co., the New Mexico Court of Appeals affirmed the district court’s decision granting summary judgment to an insurer after determining that bad faith claims on a...more

Pillsbury - Policyholder Pulse blog

Paloma Resources v. Axis Insurance Shows How “The” Can Be the Genuine Article in a Policyholder Defense

It’s said that an ant can carry fifty times its own weight. That’s nothing. A recent decision out of the U.S. Court of Appeals for the Fifth Circuit provides a compelling reminder to policyholders and their counsel: Even the...more

Carlton Fields

Minnesota Appeals Court Limits Coverage in Law Firm Malpractice Dispute Over Policy Clause

Carlton Fields on

In Smith Jadin Johnson PLLC v. Minnesota Lawyers Mutual Insurance Co., the Minnesota Court of Appeals reversed a lower court’s decision that required Minnesota Lawyers Mutual Insurance Co. to defend a legal malpractice claim...more

Kennedys

Appellate Court of Illinois decision reminds insurers to communicate with insureds or face potential consequences: Estoppel of...

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The Appellate Court of Illinois recently reminded insurers that they may be estopped from raising coverage defenses through their misleading acts or statements, including silence. In Monroy-Perez v. Sentry Select Ins. Co.,...more

Lowenstein Sandler LLP

Bad Faith No More: New York Courts Shift the Insurance Paradigm

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In this episode of Don't Take No For An Answer, Lynda A. Bennett and Eric Jesse discuss two New York cases that mark a turning point in allowing policyholders to pursue bad faith claims against their insurers. The cases shift...more

Cozen O'Connor

Fourth DCA Reverses Jury Verdict Due to Improper Admission of Claims Handling and Bad Faith Evidence

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In Universal Property & Casualty Insurance Co. v. Naze, No. 4D2024-0098 (Fla. 4th DCA June 4, 2025), the Fourth District Court of Appeal reversed a jury verdict in favor of the insured, holding that the trial court improperly...more

Cozen O'Connor

Insurer’s Use of Conflicting Reports Not Bad Faith, Says Court

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In El Dueno, LLC v. Mid-Century Insurance Company (2025 WL 1540329) (10th Cir. 2025)), the Tenth Circuit Court of Appeals affirmed summary judgement on behalf of the insurer on the basis that the insurer did not act in bad...more

Ballard Spahr LLP

WA State Court: No COVID-19 Coverage in Tulalip Tribes v. Lexington

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In a recent COVID-19 Washington State insurance bad faith case, Tulalip Tribes of Washington v. Lexington Ins. Co., Division I of the Washington Court of Appeals affirmed Washington’s stance holding lost physical use of...more

Wiley Rein LLP

No Coverage for Lawsuit Where “Claim” First Made at Time of Pre-Inception Tolling Agreement

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In a win for Wiley’s client, a New York intermediate appellate court, applying New York law, has affirmed that no coverage is available for a legal malpractice lawsuit because the “claim” was first made before the policy’s...more

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