COVID Business Interruption Claim Survives Motion to Dismiss Courts remain divided as to whether insureds’ business interruption lawsuits stemming from COVID-19 closures have made allegations of fact sufficient to survive a 12(b)(6) or analogous state court motion to dismiss. Recently, the United States District Court for the Western District of Missouri, applying Missouri law, on the one hand, granted Lexington... Read More
Contractor Entitled to Coverage as Additional Insured on Subcontractor’s Policy A New York Appellate Court upheld the lower court’s ruling that Pofi Construction Corporation (“Pofi”), the general contractor on a repair and maintenance projection for the subject building in Manhattan, was an additional insured under a policy Rutgers Casualty Insurance Company (“Rutgers”) issued to Pofi’s subcontractor for the restoration of... Read More
Coverage Case Stayed Because Same Factual Dispute in Underlying Case The United States District Court for the Eastern District of California, applying California law, ordered a stay of the coverage case until the underlying state court action concludes. The coverage case involves an insurance coverage dispute between New York Marine & General Insurance Company (“New York Marine”) and its insureds.... Read More
“Special Hazards, Fluid Endorsement” Ambiguous – Total Pollution Exclusion Inapplicable The United States Court of Appeals for the First Circuit, applying Massachusetts law, reversed the district court’s finding that the relevant excess policy provisions unambiguously excluded coverage and ordered entry of judgment in favor of Performance Trans., Inc. and Utica Mutual Insurance Company (collectively “PTI”) on its breach of contract... Read More
Insurer Failed to Provide Sufficient Notice of Non-Payment The United States District Court for the Northern District of Illinois, in an opinion written by Judge Matthew Kennelly, applying Illinois law, granted Ryan and Sean Harwick’s (“Plaintiffs”) motion for summary judgment in a lawsuit against AXA Equitable Life Insurance Company (“AXA”) finding that the nonpayment notice provided by AXA did not... Read More
No Coverage for Shareholder Suits Due to Relation-Back Clause The Eighth Circuit Court of Appeals, applying Minnesota law, affirmed the district court’s finding that a prior acts exclusion in a directors and officers liability policy barred coverage for shareholder suits stemming from an insured’s failure to disclose related-party transactions to the SEC before going public. Tile Shop Holdings, Inc. (“Tile Shop”),... Read More
Business Interruption Coverage Barred by Virus Exclusion The United States District Court for the Northern District of Illinois, in an opinion by Judge Kocoras, applying Illinois law, dismissed with prejudice Plaintiffs’ suit against West Bend Mutual Insurance Company (“West Bend”) seeking coverage for business interruption losses stemming from the COVID-19 pandemic. The court found that the underlying policy’s “Virus Exclusion”... Read More
Policyholder has Burden to Prove Exception to Exclusion Applies The Illinois Appellate Court for the Fifth District, on an issue of first impression, in an opinion written by Justice Boie with Justices Cates and Moore concurring, applying Illinois law, affirmed the decision of the circuit court holding that it is the insured’s burden to prove that its claim falls within... Read More
“Mechanical Device” Exclusion Bars Coverage for Grain Auger Accident The Supreme Court of Illinois, in an opinion written by Justice Michael Burke with Chief Justice Anne Burke and Justices Garman, Karmeier, Theis, and Neville concurring reversed the appellate court and affirmed the circuit court’s finding of summary judgment for State Farm Insurance Company (“State Farm”) finding that the “mechanical device”... Read More
N.D. IL / COVID-19: Closure due to Governor’s Orders Not “Direct Physical Loss”. Read More » Tenn. Sup. Ct. / Asbestos: Manufacturers Not Liable for Failure to Warn About the Dangers of Post-Sale Asbestos-Containing Materials. Read More » IL 1st Dist. / Notice: Report to Police 11 Days after Accident is “as Soon as Practicable”. Read More » 9th Cir. / Strict Liability: Amazon Not a Seller When Third-Party... Read More
