Minnesota Federal Judge Forces AIG To Produce Communications With Reinsurers, Loss Reserves, And Underwriting Files A Minnesota federal judge has ordered AIG to produce loss reserve information, underwriting files, and communications with its reinsurers in a bad faith insurance dispute with its policyholder, Donaldson Co., on whose behalf AIG had settled two underlying lawsuits arising out of defects in air-intake... Read More

CA Appellate Court Finds Damage From Installation Of Defective Steel Framing Is A Business Risk Not Covered By CGL Policy A California Appellate Court, applying California law, held that Liberty Surplus Insurance Company (Liberty) had no coverage obligation to a subcontractor who installed defective steel framing in a California apartment complex, because the loss constituted a business risk and was... Read More

5th Cir. Rejects Excess Insurers’ Assertion That Their Policies Are Only Triggered When Underlying Policies Are Exhausted By Claims Covered By Their Excess Policies The Fifth Circuit Court of Appeals, applying Texas law, held that the retained limits of excess policies are satisfied where the underlying policies are exhausted by claims that are not covered under the excess policies. In September... Read More

Illinois Appellate Court Finds Exclusivity Provisions No Bar To Direct Action Against Employer For Asbestos-Related Disease In a case of first impression, the First District Illinois Appellate Court, applying Illinois law, held employers liable for direct claims by former employees for asbestos-related disease that would otherwise have been barred as untimely under workers’ compensation statutes.  This decision has potential implications... Read More

2nd Cir. Holds Insurer Must Defend Insured Against ERISA Claim Even Though Intentional Wrongdoing Alleged In Non-ERISA Claims The 2nd Circuit Court of Appeals reversed a district court’s grant of summary judgment in favor of Hartford Casualty Insurance Company (Harford), finding the broad duty to defend under New York Law required Hartford to defend its policyholder against an ERISA claim. Euchner-USA,... Read More

A New York state court applying New York law held that American Home Assurance Company (AIG) must pay attorneys’ fees incurred by the New York/ New Jersey Port Authority in its successful campaign for defense coverage relating to asbestos lawsuits filed by underlying plaintiffs who constructed the World Trade Center (WTC). Plaintiff AIG filed a complaint seeking a declaration that... Read More

The United States 8th Circuit Court of Appeals, applying Missouri law, held that sealant fumes fall within the parameters of an absolute pollution exclusion. In the case before the court, Titan Contractor Services, Inc. (Titan) had been sued for negligence based on allegations stemming from its use of TIAH, an acrylic concrete sealant. Titan’s commercial general liability insurer, United... Read More

The United States Court of Appeals for the 11th Circuit, applying Florida law, denied Continental Insurance Company’s motion requesting publication of the Court’s March 20, 2014 opinion, which applied an exception to the general rule that requires a court to only refer to the underlying complaint and compare the facts within it to the language of the insurance policy... Read More

The California Supreme Court found that Hartford was not obligated to provide a defense or indemnity to its policyholder for alleged implicit disparagement of a competitor’s products under its advertising liability coverage. Hartford issued a CGL policy to Ultimate Support Systems (Ultimate) that covered “personal and advertising injury” including claims arising from “[o]ral, written, or electronic publication of material that... Read More

A Washington Court of Appeals held that an explicit or implicit threat of immediate and severe consequences by a government agency triggers an insurers’ duty to defend “any suit;” however, it ruled that in the present case, the agency action was not adversarial and, therefore, did not trigger the duty to defend. A gas station owner voluntarily reported contamination and... Read More