
Future Of 'Ambiguous' Defect Exclusion Remains To Be Seen
The LEG-3 exclusion, a defect exclusion developed by the London Engineering Group, stood largely untested for nearly three decades, but just two years after a Washington, D.C., federal court found the exclusion to be ambiguous, policyholder attorney Angelia Wesch tells Law360 that whether the underwriting group tightens the exclusion's language remains to be seen.

Judge Denies Exit Bids In Gas Leak Explosion Coverage Row
A Liberty Mutual unit can still seek to avoid defending an ongoing lawsuit against a manufacturer of cannabis products and others over a fatal gas leak explosion, an Oregon federal court ruled, rejecting the property owners' and manager's position that the claims they face fall outside the scope of a marijuana exclusion.

Insurer Didn't Owe Coverage To IT Co. In BIPA Violation Suit
An insurer had no duty to defend or indemnify an information technology company in a class action alleging violations of Illinois' Biometric Information Privacy Act, a state appeals court affirmed, finding that underlying events occurred before the claims-made policy's retroactive date.
Property More
The North Carolina Business Court has rounded the corner into fall with insurance disputes over COVID-19 coverage at a chain of outlet malls and the theft of over $900,000 in legal THC reportedly stolen from a... (more story)
Attorneys for the opposing parties in Hertz's Colorado Supreme Court petition contending it should not be considered an insurer under Colorado statute argued for dramatically differing readings of the state's ... (more story)
Nationwide Insurance and a Georgia property owner reached a settlement Monday to end claims that the insurer tried to lowball the owner on $3.8 million worth of storm damage with an offer of less than $8,000.
An Arkansas federal court correctly determined that a manufacturer of vacuum products breached its lease with a warehouse owner by failing to purchase insurance coverage equal to the warehouse property's "full... (more story)
A St. Louis federal court is weighing whether to sanction Liberty Mutual Personal Insurance Company's lawyers after they submitted a motion containing citation errors and then, after a warning, "somehow" submi... (more story)
A Louisiana federal court officially dismissed a $4.6 million dispute involving Goodyear Tire & Rubber Co., Michelin North America Inc. and the companies' insurers over water damage to bales of rubber, saying ... (more story)
An insurance broker accused of mishandling a furniture retailer's insurance procurement, which left the retailer without coverage for a fire, is not entitled to defense or indemnity under its professional liab... (more story)
A group of domestic and foreign insurers including underwriters at Lloyd's of London have asked a Louisiana federal judge to dismiss their lawsuit seeking an order to arbitrate a $7 million Hurricane Ida damag... (more story)
Travelers is seeking to recoup around $1 million in costs from a shipping logistics company that it says failed to verify to whom it was providing a shipment of cameras, resulting in their theft, according to ... (more story)
A Chubb unit urged a California federal court to rule that it needn't pay a software company CEO and his wife millions of dollars for living expenses related to a 2017 water damage claim, saying the couple mad... (more story)
General Liability More
A construction company and its insurer must go to trial over whether the company's invitation to a mediation constituted a defense tender for a now-settled counterclaim relating to a sinkhole discovered in Dec... (more story)
The Pennsylvania Supreme Court will consider whether insurance policy language blocking coverage for injuries "arising out of" the ownership or use of "autos" was unclear enough to be interpreted in favor of g... (more story)
A subcontractor's insurer owes no defense to the property management company for a BJ's Restaurant location in an ongoing lawsuit alleging that a glass door collapsed onto a patron, a New York federal court ru... (more story)
A bridal shop that won a $38 million judgment against a contractor following a fire at a neighboring property told a New York federal court that the contractor's insurer can't hide behind a default judgment it... (more story)
The Fourth Circuit's second session of the year will have judges weigh in on multimillion-dollar insurance fights, including whether claims related to Under Armour's yearslong securities fraud scheme are "conn... (more story)
The First Circuit has told a Puerto Rico federal court to throw out a payroll company's claims against a contractor for allegedly failing to pay $1.4 million in labor costs for rebuilding projects after Hurric... (more story)
A Travelers unit said it doesn't owe two Liberty Mutual insurers over $2 million in defense and indemnity costs incurred in an underlying injury suit against their mutual insured, telling a New York federal co... (more story)
A New York bankruptcy judge Wednesday approved nine remaining settlements with insurance companies for the Roman Catholic Diocese of Syracuse as part of its Chapter 11 plan, following her approval of two earli... (more story)
Insurance litigation in federal district courts has been trending downward over the past two years, following a period of record high filings because of COVID-19 and a series of extremely destructive storms, a... (more story)
A law firm's professional liability insurer has a duty to defend it and one of its attorneys in an underlying malpractice lawsuit stemming from their representation of defendants that faced civil forfeiture cl... (more story)
Specialty Lines More
New Jersey's justices will help the Third Circuit consider whether a resident can recover up to the full $2 million limit in his employer's auto policy with Zurich rather than its $15,000 limit for underinsure... (more story)
The Fifth Circuit revived an oil and gas producer's suit seeking coverage for a settlement it reached with a bankrupt oilfield services firm over faulty cement, saying a Texas federal court incorrectly tossed ... (more story)
Financial services company Robert W. Baird & Co. told a Wisconsin federal court that a Chubb unit has wrongly refused to cover any of the company's more than $5 million loss stemming from fraudulent wire instr... (more story)
A decorative surface manufacturer told a Delaware state court that an AIG unit must cover losses incurred after the chemical company it acquired allegedly misrepresented the state of its relationship with the ... (more story)
An insurer's claims that a policyholder owes nearly $2.5 million in unpaid premiums across three separate policies must go to trial, a West Virginia federal court ruled, noting that the policyholder already di... (more story)
This past week, the Delaware Chancery Court and Supreme Court handled a crowded corporate docket, weighing blockbuster merger appeals, shareholder settlement objections, fights over control involving an NBA fr... (more story)
Two youth treatment centers accused an insurer Thursday of refusing to provide full coverage for hundreds of suits claiming that the centers mistreated children in their care, telling a New Hampshire federal c... (more story)
A trustee for Rite Aid Corp.'s bankruptcy estate has sued Walgreens Boots Alliance Inc. and a subsidiary, Walgreen Co., in Delaware Chancery Court, accusing the pharmacy giant of failing to cover tens of milli... (more story)
Illinois' insurance regulator demanded that State Farm turn over data over its homeowners insurance business, the Sixth Circuit affirmed class certification in a dispute over State Farm's payments for totaled ... (more story)
Northeast Insurance Co., a captive insurer for several hospitals and a Jewish nonprofit, asked a New York bankruptcy judge for Chapter 15 recognition of its Bermuda liquidation filing, saying it was rendered i... (more story)