Tribune shareholders can maintain claim against broker for negligence. An Illinois Appellate Court, applying Illinois law, held that the trial court erred in concluding that an exclusion in a directors’ and officers’ (“D&O”) policy would have precluded coverage for underlying suits filed against policyholders, the Robert R. McCormick Foundation and the Cantigny Foundation (collectively “Policyholders”).  Consequently, Policyholders were allowed to... Read More

No “occurrence” because the damages were the ordinary consequence of subcontractor’s defective window installation. An Illinois federal district court, applying Illinois law, held that insurers have no duty to cover a subcontractor’s settlement with a condominium association relating to property damage caused by subcontractor’s faulty window and glazing services. Metro North, the governing body of a condominium building in Chicago, filed... Read More

Equitable Contribution available when two workers’ compensation policies cover same loss. The Massachusetts Supreme Court, on a certified question from the Federal United States Court of Appeals for the First Circuit, found that when one workers’ compensation policy is target tendered, it may seek contribution from another insurer that provided coverage for the same loss.  Although the opinion is rather... Read More

Georgia Supreme Court finds lead a “pollutant” in Absolute Pollution Exclusion rejecting view that it only applies to traditional pollution. The Georgia Supreme Court, applying Georgia law, reversed the appellate court, and held, as a matter of first impression, that lead poisoning due to lead-based paint ingestion was excluded from coverage pursuant to an “absolute pollution exclusion” in a Comprehensive... Read More

9th Cir. applies “efficient proximate cause” test and finds “corrosion” can constitute “direct damage.” The Ninth Circuit, applying Nevada law, affirmed a jury’s finding that Continental Casualty Company (“Continental”) was responsible for covering damage to equipment at an Olin Corporation (“Olin”) chemical plant in Nevada.   Continental issued Olin an insurance policy covering the plant’s boilers and machinery.  In late 2008,... Read More

NY court found “injury-in-fact” theory did not bar $58MM claim as policy only requires some injury during its term. A trial judge in New York State Court found that Ace INA Insurance (“Ace INA”) Factory Mutual Insurance Co. (“Factory Mutual”) and Arch Insurance Co. (“Arch”) were obligated to reimburse approximately $58MM to TransCanada Energy USA, Inc. (“TransCanada”) for property damage... Read More

AIG liable to CNA for contribution despite fact policyholder Valspar would be reimbursing AIG for its liability. The U.S. Court of Appeals for the Eighth Circuit, applying Minnesota law, found that National Union Fire Insurance Co. of Pittsburgh, P.A.  (AIG) owed Valspar Corporation a defense duty for alleged injuries to former individuals exposed to Valspar’s paint products that contained benzene. ... Read More

Refuses to dismiss data breach claims despite fact policyholders were provided it in a separate document. An Illinois Federal District Court, applying Illinois law, denied Combined Insurance Company of America’s (“Combined Insurance”) Motion to Dismiss a Dillard’s employee’s proposed class action and breach of contract claim.  The court held that the plaintiff had sufficiently plead its claim and that it... Read More

NY Federal Magistrate finds that traditional method of brokers circulating U.S. attorney reports did not maintain their confidentiality. A Federal New York District Court Chief Magistrate Judge for the Eastern District, Judge Roanne L. Mann, applying “federal common law,” granted Amtrak’s motion to compel discovery against Certain London Insurers, thus forcing the London Insurers to produce broker communications that had... Read More

No Late Notice Prejudice Required for Claims-Made Coverage Involving “Sophisticated” Insured: Court bases different prejudice rule on fundamental differences between claims-made and “occurrence” policies. The New Jersey Supreme Court, applying New Jersey law, held that National Union was not required to prove prejudice due to delayed notice prior to denying coverage under its claims-made policy.  Templo Fuente De Vida Corp.... Read More