Posts filtered by tags: Tred Eyerly[x]


 

Coverage for Faulty Workmanship Denied

    The court found there was no coverage for the insureds' alleged negligent failure to construct a building.  Evanston Ins. Co. v. DCM Contracting , 2020 U.S. Dist. LEXIS 63977 (N.D. Ga. Feb. 28, 2020).     Turning Point Church sued DCM Contracting for faulty workmanship on a construction project. Turning Point sent a demand letter to DCM on August 18, 2017 and filed suit in December. Evanston did not receive notice of Turning Point's claims and the lawsuit until May 15, 2018.      Evanston fi...
Tags: Insurance, Evanston, Comprehensive General Liability, Construction Defects, Tred Eyerly, Evanston Ins Co, Notice, DCM Contracting


Broker Not Agent of Insurer

    The court granted the insurer's motion for summary judgment, finding that the insured's broker was not an agent of the carrier. Maxum Indem. Co. v. Broken Spoke Bar & Grill , 2020 U.S. District. LEXIS 49736 (W.D. Ky. March 23, 2020).     The insured argued that "insurance Agent Clark" assured him that coverage would extend to altercations or robberies at the insured's bar. Maxum Indemnity Company denied coverage and filed suit for a declaratory judgment. Maxum moved for summary judgment.   ...
Tags: Insurance, Clark, Tred Eyerly, Duty to Indemnify, MAXUM, Maxum Indem Co, Broken Spoke Bar Grill 2020 U S District LEXIS, Maxum Indemnity Company, Agony Clark Estoppel


Hawaii Insurance Division Issues New Memorandum on Policy Handling During COVID-19

    The Hawaii Insurance Commissioner issued Memorandum 2020-4A on April 27, 2020, waiving certain requirements for insurers and to give instructions and guidelines.      First, the Insurance Division will not regard the following as unfair trade practices or unfair methods of competition under Haw. Rev. Stat, Art. 13: . Waiving of fees, penalties, or other charges relating to an insured's temporary inability to submitpremium payments or otherwise respond to an insurer's inquiries; . Extending ...
Tags: Insurance, Hawaii, Administrative, Tred Eyerly, COVID-19, Hawaii Insurance Commissioner, First the Insurance Division, the Insurance Division


Donations to Nonprofit Treated as Revenues for Business Interruption Calculations

    The court found that a nonprofit's donation receipts were included in its revenues for determining its business interruption claim.  Alley Theatre v. Hanover Ins. Co. , 2020 U.S Dist. LEXIS 52393 (S.D Tex. March 26, 2020).      Alley Theatre was closed due to Hurricane Harvey. It received donations after it was closed. Alley submitted a claim for business interruption losses due to its closure. Its policy provided income coverage "during the 'restoration period' when your business is necessa...
Tags: Insurance, Commonwealth, Alley, Hanover, Fifth Circuit, Tred Eyerly, Business Interruption, First Party Insurance, Alley Theatre, Hanover Ins, Finger Furniture Co, Finger Furniture


Texas Supreme Court Stands By Eight-Corners Rule In Determining Duty to Defend

    In answering  a certified question from the Fifth Circuit, the Texas Supreme Court held that the eight-corners rule applied when determining the duty to defend even if the policy did not promise to defend suits that were "groundless, false or fraudulent."  Richards v. State Farm Lloyds , 2020 WL 1313782 (Tex. March 20, 2020).     The insureds' grandson died from an accident when he was driving an all-terrain vehicle on the grandparents' property. The child's mother sued the grandparents, all...
Tags: Insurance, Fifth Circuit, Richards, Texas Supreme Court, Duty to Defend, Tred Eyerly, Fifth Circuit the Texas Supreme Court, State Farm Lloyds


Dispute Over Number of Occurrences Remanded by Alaska Supreme Court

    The Alaska Supreme Court remanded to the trial court to determine whether the parties reached agreement in their settlement on the number of occurrences. McCormick v. Chippewa, Inc. , 2020 Alaska LEXIS 20 (Alaska March 20, 2020).     Brent McCormick was injured while working aboard the vessel owned by Chippewa, Inc. McCormick sued Chippewa.      Chippewa had a policy with a $500,000 per-occurrence limit less defense costs. McCormick's attorney, Gerald Markham, sent Chippewa an offer to sett...
Tags: Insurance, Alaska, Markham, Farley, Alaska Supreme Court, McCormick, Chippewa, Tred Eyerly, Occurrence, McCormick McCormick, Chippewa Inc, Brent McCormick, Chippewa Chippewa, Gerald Markham, Laura Farley


Accident Away From Insured Premises Covered Under Homeowners Policy

    The insured was covered under his homeowner's policy when two visitors to an uninsured location were killed by carbon monoxide poisoning. Green Mountain Ins. Co., Inc. v. Wakelin , 140 N.E. 3d 418 (Mass. 2020).     Wakelin owned a cabin without electricity in a remote location. He purchased a gasoline-powered generator. He wanted the generator to be portable and paid extra for wheels and a handle for the generator. He brought the generator to his cabin to use there to provide power for his ...
Tags: Insurance, Wakelin, Tred Eyerly, First Party Insurance, Green Mountain Ins Co Inc, Wakelin Wakelin


Hawaii Insurance Division Issues Request to Insurers on COVID-19

    The Hawaii Insurance Commissioner has requested that admitted and non-admitted insurers offering policies in Hawaii take special consideration of policyholder impacted by COVID-19. The March 27, 2020 bulletin reads:      The impact on individuals and businesses due to COVID-19 nationwide is evident in the daily news coverage. The anticipated negative impact on individuals and businesses in this State due to COVID-19 will be realized in the near future. Business will have substantially reduc...
Tags: New York, Insurance, Hawaii, Administrative, State, Division, Department of Financial Services, Tred Eyerly, Business Interruption, COVID-19, COVID


Pennsylvania Court Upholds Executive Order Closing Non-Essential Businesses Due to Coronavirus

    The Governor's Executive Order compelling the closure of non-essential businesses to reduce the spread of coronavirus survived a challenge before the Pennsylvania Supreme Court. F riends of Devito v. Wolf , 2020 Pa. LEXIS 1987 (Pa. April 13, 2020). The case does not involve coverage issues, but the court's acknowledgment and description of the dangers of coronavirus may have an impact on future coverage litigation.      Petitioners were four businesses and one individual seeking extraordinar...
Tags: Insurance, Pennsylvania, Pennsylvania Supreme Court, DeVito, Petitioner, Tred Eyerly, Petitioners, COVID-19, COVID


Is There Direct Physical Loss Under A Property Policy When Cornavirus is Present?

    Most property policies provide coverage for property damage only when there is "direct physical loss" to covered property. Early indications are that the coronavirus remains on surfaces. The duration can last from a few hours to three weeks, depending on the type of surface material. If an employee is infected and the store or restaurant must closed because the virus may rest on surfaces within the building, is there direct physical loss, even though the building structure itself is unharmed...
Tags: Oregon, Insurance, Hawaii, Louisiana, Wilkin, First Presbyterian Church, Tred Eyerly, Business Interruption, First Party Insurance, Travelers Prop Cas Co, Chinese Drywall, Widder, Great Am Ins, COVID-19, Trutanich, La Citizens Prop Ins Corp


No Coverage for Cyber Theft

    Two endorsements precluded coverage for cyber theft experienced by the insured.  Midlothian Enterprises, Inc. v. Owners Insurance Company, 2020 U.S. Dist. LEXIS 30237 (E.D. Va. Feb. 20, 2020).      JoAnne Davis received an email from the Midlothian president and shareholder, E. Bryce Powell, asking her to wire money to a specified bank account. As part of her job, Davis would wire money from Midlothian's bank account to other bank accounts when asked to do so by Powell. Little did she know ...
Tags: Alabama, Insurance, Davis, Powell, Midlothian, Tred Eyerly, First Party Insurance, Joanne Davis, Cyber Risk, Midlothian Enterprises Inc, Owners Insurance Company, Bryce Powell, Powell Little, Owners Insurance Company Owners, Madlothian


Assignment of Claims to Contractor Barred under Iowa Law

    The Iowa Supreme Court affirmed the lower court's denial of the policy holder's assignment to his contractor of claims under his homeowners policy. 33 Carpenters Construction, Inc v. Cincinnati Ins. Co. ,2020 Iowa Sup. LEXIS 15 (Iowa Feb. 14, 2020).      The insured's home suffered damage from a hailstorm and windstorm. He entered an agreement with 33 Carpenters under which 33 Carpenters would repair the storm damage to the home in exchange for the insured's proceeds from the homeowners pol...
Tags: Insurance, Iowa, Cincinnati, Iowa Supreme Court, Tred Eyerly, First Party Insurance, Assignment, Cincinnati Ins, Public Adjuster, Iowa Sup LEXIS, Carpenters Construction Inc


Insurer's Motion for Summary Judgment on Faulty Workmanship Claims Denied

    The insurer unsuccessfully sought summary judgment based upon the underlying complaint's allegations of damage caused by faulty workmanship. Barton v. Nationwide Mut. Fire Ins. Co ., 2020 U.S. District. LEXIS 25943 (D. Ala. Feb. 14, 2020).      The Bartons contracted with Stacy Alliston Design and Building, Inc. (Stacy) to build their home, Stacy acted as the general contractor and hired subcontractors to perform work in building the home. After plaintiffs moved into the house, they noticed...
Tags: Alabama, Insurance, Stacy, Barton, Construction Defects, Tred Eyerly, Business Risk Exclusions, Occurrence, Bartons, Nationwide Mut Fire Ins Co 2020 U S District LEXIS, Stacy Alliston Design, Building Inc


Insurer's Motion to Dismiss Granted

    The insurer's motion to dismiss a bad faith count was granted because the existence of coverage was "fairly debatable" under New Jersey law. Merchants Mut. Ins. Co. v. 215 14th St., LLC, 2020 U.S. District. LEXIS 23664 (D. N. J. Feb. 10, 2020).      Coverage for damage to the insured's commercial building was denied. The insurer sued for a declaratory judgment that there was no coverage. The insured counterclaimed, alleging that the policy provided coverage for abrupt collapse, which was d...
Tags: Insurance, New Jersey, Collapse, Tred Eyerly, First Party Insurance, Bad Faith, New Jersey law Merchants Mut Ins Co


Insurer Must Defend Negligent Misrepresentation Claims

    The Missouri Court of Appeals reversed the trial court's ruling that the insured's policy did not cover claims based upon negligent misrepresentation. Am. Family Mut. Ins. Co. v. Sharon , 2020 Mo. App. LEXIS 123 (Mo. Ct. App. Feb. 4, 2020).      Robert Sharon sued Gregory and Kristine Schwenzer for, among other things, negligent misrepresentation and unlawful merchandising practices in connection with Sharon's purchase of the Schwenzers' home. Sharon's complaint alleged that after the sale,...
Tags: Insurance, American Family, Misrepresentation, Gregory, Sharon, Missouri Court of Appeals, Duty to Defend, Tred Eyerly, Ins Co, Robert Sharon, Kristine Schwenzer


Insurer's Motion for Judgment on Pleadings to Dismiss Collapse Case Denied

    The court rejected the insurer's attempt to dismiss a collapse case on a Motion for Judgment on the Pleadings.  Peoria Prop. Invs. LLC v. Cincinnati Indemn. Co. , 2020 U.S. Dist. LEXIS 17350 (C.D. Ill. Jan. 31, 2020).     The policy covered a nine-story building which had offices on the first floor, a six-floor parking tower on floors two through seven, and more commercial offices on floors eight and nine.      Peoria submitted a claim to Cincinnati reporting a "large boom" and shaking at th...
Tags: Insurance, Collapse, Cincinnati, Peoria, Tred Eyerly, First Party Insurance, Pleadings Peoria Prop Invs LLC, Cincinnati Indemn Co


Allegations of Properly Damage Caused by Leaky Roof Must be Defended

    The business risk exclusions did not apply to bar coverage for the underlying claims of damage caused by a leaky roof. Westfield Ins, Co, v. Miller Architects & Builders , 2020 U.S. App. LEXIS 2972 (8th Cir. Jan. 30, 2020).      Miller began construction on luxury apartment complex, but was terminated a year after construction began. Significant architectural and structural problems caused by Miller and its subcontractors were found. The property owner threatened legal action and Miller sou...
Tags: Minnesota, Insurance, Westfield, Miller, Comprehensive General Liability, Construction Defects, Duty to Defend, Tred Eyerly, Business Risk Exclusions, Westfield Ins Co, Miller Architects, Miller Westfield


Is There Direct Physical Loss Under Property Policy with Presence of COVID-19?

    Most property policies provide coverage for property damage only when there is "direct physical loss" to covered property. Early indications are that COVID-19 remains on surfaces. The duration can last from a few hours to three weeks, depending on the type of surface material. If an employee is infected and the store or restaurant must closed because the virus may rest on surfaces within the building, is there direct physical loss, even though the building structure itself is unharmed?     T...
Tags: Oregon, Insurance, Hawaii, Louisiana, Wilkin, First Presbyterian Church, Tred Eyerly, Business Interruption, First Party Insurance, Travelers Prop Cas Co, Chinese Drywall, Widder, Great Am Ins, COVID-19, Trutanich, La Citizens Prop Ins Corp


Is There Direct Physical Loss Under A Property Policy When COVID-19 is Present?

    Most property policies provide coverage for property damage only when there is "direct physical loss" to covered property. Early indications are that COVID-19 remains on surfaces. The duration can last from a few hours to three weeks, depending on the type of surface material. If an employee is infected and the store or restaurant must closed because the virus may rest on surfaces within the building, is there direct physical loss, even though the building structure itself is unharmed?     T...
Tags: Oregon, Insurance, Hawaii, Louisiana, Wilkin, First Presbyterian Church, Tred Eyerly, Business Interruption, First Party Insurance, Travelers Prop Cas Co, Chinese Drywall, Widder, Great Am Ins, COVID-19, Trutanich, La Citizens Prop Ins Corp


No Duty to Defend Breach of Contract Claim Which Does Not Constitute Property Damage

    The court determined there was no duty to defend because the underlying complaint alleged the contractor's breach of contract, but no property damage. Southern-Owners Ins. Co. v. Mac Contractors of Florida , 2020 U.S Dist. LEXIS 14611 (M.D. Fla. Jan. 29, 2020).     KJIMS Construction contracted with the homeowners to construct their residence on a cost-plus basis. KJIMS did not perform substantial completion of the home, and either abandoned construction or was terminated from further perfo...
Tags: Florida, Insurance, Fla, Comprehensive General Liability, Construction Defects, Duty to Defend, Tred Eyerly, Southern Owners Ins Co, Southern Owners, Mac Contractors, KJIMS


First Suit Filed for Losses Caused by COVID-19

    Last week, the first lawsuit was filed seeking insurance coverage for business-interruption due to losses caused by COVID-19. The case, Cajun Conti, LLC, et al. v. Certain Underwriters at Lloyd's of London, ,et al., was filed in Louisiana. A New Orleans restaurant, Oceana Grill," seeks a declaratory judgment that its "all risks" policy issued by Lloyd's covers losses resulting from the closure of its restaurant due to the Governor's order restricting public gatherings and the Mayor of New ...
Tags: London, Insurance, New Orleans, Louisiana, Lloyd, Tred Eyerly, Business Interruption, First Party Insurance, COVID-19, COVID, Cajun Conti LLC, Oceana Grill


Umbrella Carrier Must Drop Down to Fill Gap in Coverage

    The umbrella insurer was required to drop down when the primary carrier's policy only covered the additional insured when it was vicariously liable for the named insured's operations. Am. States Ins. Co. v. Ins. Co. of the State of Pa ., 2020 U.S. App. LEXIS 585 (9th Cir. Jan. 7, 2020).     Sierra Pacific Industries and Howell's Forest Harvesting were sued for damages caused by the Moonlight Fires. Howell was insured by American States. Sierra was an additional insured under the American St...
Tags: Insurance, Pennsylvania, Umbrella, Sierra, Howell, Sierra Pacific Industries, Duty to Defend, Tred Eyerly, Excess Coverage, Ins Co, Am States Ins Co, American States Sierra, Insurance Company of the State


New York Instructs Property Carriers to Advise Insureds on Business Interruption Coverage

    The New York Department of Financial Services (DFS) took the unusual step last week of instructing all property/casualty insurers to provide information on commercial property insurance and details on business interruption coverage in light of the COVID-19 outbreak. The notice is .      The notice recognizes that policyholders have urgent questions about the business interruption coverage under their policies. Insurers must explain to policyholders the benefits under their policies and the ...
Tags: New York, Insurance, Tred Eyerly, New York Department of Financial Services DFS, COVID-19, New York Instructs Property Carriers, Hawaii Division of Insurance


Claims of Contamination by Lead Paint Must be Defended

    In an unpublished decision, the Illinois Appellate Court determined that claims against the insured painting contractor had to be defended by the CGL carrier. Owners Ins. Co. v. Precision Painting & Decorating Corp. , 2019 Ill. App. Unpub. LEXIS 2425 (Ill. App. Ct. Dec. 31, 2019).     The homeowners hired Precision to paint the exterior of their home. Portions of the home were pointed with lead-based paint. Prior to the work, there were no visible paint chips or dust on the interior or exte...
Tags: Insurance, Epa, Department Of Health, Illinois Department of Public Health, Illinois Appellate Court, Comprehensive General Liability, Construction Defects, Duty to Defend, Tred Eyerly, Occurrence, CGL carrier Owners Ins Co, Precision Painting Decorating Corp, Owners Owners


Insurance Coverage and COVID-19

    Individuals and businesses are asking what insurance coverage might be available for harm caused by COVID-19 and the coronavirus. Here is a short survey addressing possible coverage under various policies.      Property Insurance - Typically, damage to tangible property by "covered causes of loss" is covered by a commercial property or homeowner's policy. The policy frequently requires a "direct physical loss." Loss caused by fire or hurricane are examples of covered perils. Tangible proper...
Tags: Insurance, Administrative, Tred Eyerly, COVID, Property Insurance Typically, Workers Compensation Employees


Coverage Established for Ransomware Attack

    The court found direct physical loss was established, allowing coverage for a ransomware attack on the insured's computer server and networked computers. Nat'l Ink & Stitch, LLC v. State Auto Prop. & Cas. Ins. Co. , 2020 U.S. Dist. LEXIS 11411 (D. Md. Jan. 23, 2020).     The insured stored art, logos, and designs for its business on its computer server. An ransomware attack prevented the insured from accessing all of the art files and other data contained on the server, and all of its softw...
Tags: Insurance, Tred Eyerly, First Party Insurance, Cyber Risk, State Auto, Nat l Ink Stitch LLC, State Auto Prop Cas Ins, Electronic Media and Records


"Your Work" Exclusion Bars Coverage

    Although the appellate court agreed there was property damage caused by an occurrence, the "your work" exclusion barred the insured contractor's claim. King's Cove Marina, LLC v. Lambert Commercial Construction. LLC , 2019 Minn. App. LEXIS 389 (Minn. Ct. App. Dec. 16, 2019).     King's Cover Marina sought to expand and remodel its main building. The marina hired Lambert to perform the remodeling project. Lambert hired Roehl Construction, Inc. as a subcontractor to install new concrete footi...
Tags: Insurance, King, Marina, Lambert, Comprehensive General Liability, Construction Defects, Tred Eyerly, Business Risk Exclusions, Occurrence, Roehl, Cove Marina LLC, Lambert Commercial Construction LLC, Roehl Construction Inc, United Fire Casualty Company United Fire, Untied Fire United Fire, Lambert United Fire


Procedural Bad Faith Presentation

  Our panel addressed Procedural Bad Faith this morning at the ABA’s Insurance Coverage Litigation Committee’s annual seminar this morning in Tucson, AZ.  [Author: Tred Eyerly]
Tags: Insurance, Aba, Tucson AZ, Tred Eyerly, Insurance Coverage Litigation Committee


Insurer's Summary Judgment Motion for Rescission or Reformation of Umbrella Policy Fails

    The insurer was unsuccessful in seeking rescission or reformation of an umbrella policy. Great Am. Ins. Co. v. Zelik , 2020 U.S. District. LEXIS 5229 (S.D. N. Y. Jan. 6, 2020).      Kim Hodges tripped and fell in front of vacant lot owned by Joseph Zelik, a real estate investor. Zelik tendered to Great American under the umbrella policy he had covering the lot. Zelik obtained the policy through Secure Insure, an insurance broker.      As part of the application process for the umbrella poli...
Tags: Insurance, Umbrella, Allstate, Misrepresentation, Hodges, Comprehensive General Liability, Tred Eyerly, Bushwick Avenue, Broker's Negligence, Great Am Ins Co, Kim Hodges, Joseph Zelik, Zelik, Hodges Allstate, Zelik Zelik


Property Damage Not Covered, Personal Property Damage is Covered

    The Illinois Appellate Court held that there was no coverage for faulty workmanship causing damage to property, but there was coverage for damage to personal property. Certain Underwriters at Lloyd's London v. Metropolitan Builders, Inc ., Ill. App. LEXIS 979 (Ill. Ct. App. Dec. 18, 2019).      Metropolitan was the general contractor for a construction job in Chicago. During the construction, a wall adjoining two structures collapsed. The amount of structural damage ultimately led to the Ci...
Tags: Insurance, Aig, Chicago, Collapse, Illinois, Lloyd, Illinois Appellate Court, Comprehensive General Liability, Construction Defects, Duty to Defend, Tred Eyerly, Business Risk Exclusions, Lloyd s London, Metropolitan Builders Inc