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Underwriters filed suit against FloaTEC, claiming that they were subrogated to Chevron's right to sue FloaTEC for damages caused by tendon failures of a floating oil-drilling platform. The Fifth Circuit affirmed the district court's dismissal of Underwriters' claims with prejudice, holding that the district court correctly ruled on FloaTEC's motion to dismiss before addressing any issue concerning the arbitrability of Underwriters' claims. The court also held that the district court correctly found that FloaTEC was an "Other Assured" under the policy and could thus invoke the subrogation waiver. View "Lloyd's Syndicate 457 v. FloaTEC, LLC" on Justia Law

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In this negligence case, the Supreme Court answered a question certified to it by a federal district court by concluding that the trial evidence was not legally sufficient to support the jury's finding that a continuing course of conduct tolled the statute of limitations. Plaintiff insurer brought this untimely filed action against Defendant claims adjuster alleging that Defendant caused Plaintiff to incur liability to a mortgagee. Plaintiff argued that the limitation period for commencing an action was tolled until Defendant produced a document in its files that reflected the mortgagee's interest during the course of litigation between the mortgagee and Plaintiff. The jury rendered a verdict in favor of Plaintiff. The court, however, set aside the jury's verdict on the ground that there was insufficient evidence to support the jury's finding that a continuing course of conduct tolled the action. The Supreme Court concluded that the evidence was not legally sufficient to toll the statute of limitations. View "Essex Insurance Co. v. William Kramer & Associates, LLC" on Justia Law

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The Supreme Court affirmed the judgment of the circuit court finding in favor of Plaintiff in this declaratory judgment action seeking underinsured motorist benefits under two insurance policies with Defendant, holding that the policy language was ambiguous and that underinsured motorist coverage applied. Plaintiff, special administrator of the Estate of Nehemiah Larimer, brought this action following Nehemiah's death in an accident. Defendant denied coverage pursuant to an "owned but not insured" exclusion in the underinsured motorist benefits endorsement. The circuit court, finding the language of the policy ambiguous, granted Plaintiff's motion for summary judgment. The Supreme Court affirmed, holding that the language of the underinsured motorist endorsement was ambiguous, and therefore, the interpretation most favorable to the insured must be adopted. View "Larimer v. American Family Mutual Insurance Co." on Justia Law

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In this case in which the district court certified a question of law to the Supreme Court regarding the interpretation of two insurance policies the Supreme Court answered that, under Tennessee law and based on the language in the policies at issue, the insurer, in making an actual cash value payment, may not withhold a portion of repair labor as depreciation. The policy defined actual cash value as "the cost to replace damaged property with new property of similar quality and features reduced by the amount of depreciation applicable to the damaged property immediately prior to the loss" and stated that "actual cash value includes a deduction for depreciation." The Supreme Court held (1) the language in the policies was ambiguous and must be construed in favor of the insured parties; and (2) therefore, labor may not be depreciated when the insurance company calculates the actual cash value of a property using the "replacement cost less depreciation" method. View "Lammert v. Auto-Owners (Mutual) Insurance Co." on Justia Law

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Plaintiffs, operators of a gas purification plant, filed suit against its insurer, Ace, after the insurer denied coverage for damage caused by broken metal brackets that secured crucial components. The Ninth Circuit affirmed the district court's application of Washington law and its discovery sanctions against plaintiffs. However, the panel reversed the district court's grant of summary judgment in favor of the insurer and held that there was a triable issue of fact as to whether the insurer was prejudiced by plaintiffs' remedial actions, whether plaintiffs' loss was fortuitous, whether the policy's Boiler and Machinery endorsement applied to independently confer coverage for plaintiffs' losses, whether the Endorsement's "accident" coverage applied, and whether a 16 month shutdown was consistent with the exercise of due diligence and dispatch. View "Ingenco Holdings, LLC v. ACE American Insurance Co." on Justia Law

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The Supreme Court accepted certification of a question of law in a proceeding pending before the United States District Court for the District of Connecticut and answered that Virginia law recognizes that the collateral source rule can apply to breach of contract cases. Specifically at issue was whether Virginia law applies the collateral source rule to a breach of contract action where the plaintiff has been reimbursed by an insurer for the full amount it seeks in damages from the defendant. The Supreme Court answered that the same rationales supporting the recognition of the collateral source rule in tort cases also supports the rule's application in certain breach of contract actions. The Court further explained that whether the rule applies to a given case requires a case by case analysis as to whether the parties' expectations, in light of those rationales, support the rule's application. View "Dominion Resources, Inc. v. Alstom Power, Inc." on Justia Law

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This appeal arose from fourteen lawsuits brought by various plaintiffs against (1) Laura Willis, an insurance agent; (2) Jesse Dantice, the insurance broker who hired Willis and made her the agent in charge of the insurance office; (3) their insurance agency, Southern Risk Insurance Services, LLC (Southern Risk), and (4) six insurance companies for which their office sold policies (the Insurers). The plaintiffs in the lawsuits were Willis's customers (the Insureds) and other insurance agents (the Agents) in competition with Willis and Southern Risk. The Insureds filed twelve of the lawsuits, asserting claims against Willis, Dantice, and Southern Risk for, inter alia, violations of the Unfair Trade Practices Act (UTPA), common law unfair trade practices, fraud, and conversion. They also named the Insurers as defendants on a respondeat superior theory of liability for failing to adequately supervise or audit Willis and Southern Risk. The question before the South Carolina Supreme Court was whether arbitration should have been enforced against nonsignatories to a contract containing an arbitration clause. The circuit court denied the motion to compel arbitration. The court of appeals reversed and remanded, holding equitable estoppel was applicable to enforce arbitration against the nonsignatories. The Supreme Court reversed and remanded, finding the circuit court properly denied the motion to compel arbitration. View "Wilson v. Willis" on Justia Law

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Alfa Insurance Corporation, Alfa Mutual General Insurance Corporation, Alfa Life Insurance Corporation, and Alfa Specialty Insurance Corporation (collectively, "Alfa") petitioned the Alabama Supreme Court for a writ of mandamus requiring the Montgomery Circuit Court to vacate its May 23, 2018, orders: (1) denying Alfa's motion for a protective order as to materials Alfa contended were protected by the attorney-client privilege; and (2) compelling Alfa to produce such materials for in camera inspection and for discovery. The underlying suit arose out of a policy dispute in which one side invoked an arbitration clause in the policy at issue. The insured claimed Alfa breached the policy by refusing to provide a defense and/or indemnity coverage. After review, the Supreme Court was satisfied Alfa established the trial court exceeded its discretion when it disregarded the attorney-client privilege and entered the May 2018 orders denying Alfa's motion for a protective order and compelling Alfa to produce the materials sought for in camera inspection or for discovery. Accordingly, the Supreme Court granted Alfa's petition for the writ of mandamus and directed the trial court to vacate the May 2018 orders denying Alfa's motion for a protective order and compelling Alfa to produce the materials at issue. View "Ex parte Alfa Insurance Corporation et al." on Justia Law

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The Fifth Circuit affirmed the district court's judgment in favor of Principal in an action brought by plaintiff, alleging that Principal abused its discretion by denying her benefits. The court held that Principal's benefits denial was supported by substantial evidence. The court held that, at bottom, there was no abuse of discretion in Principal's reliance on its own treating physicians' reports detailing an absence of plaintiff's impairments. The court also held that, although Principal had a structural conflict of interest that it both evaluates and pays claims, this factor had little weight in light of the extensive investigation that Principal conducted. View "Foster v. Principal Life Insurance Co." on Justia Law

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The Second Circuit affirmed the district court's order denying GEICO and CCC's motions to compel appraisal in a suit brought by a GEICO policyholder. The court held that it had jurisdiction over this appeal because it had appellate jurisdiction over an order denying a motion to compel arbitration and the appraisal process in the policy fell within the meaning of arbitration. The court held that appraisal was not appropriate in this case where the dispute concerned a legal issue about the meaning of Regulation 64, which was incorporated into the policy. Finally, the district court denied CCC's motion to compel appraisal because CCC was not a signatory to the policy and had no other contractual relationship with the policyholder. View "Milligan v. CCC Info Services" on Justia Law