Articles Posted in US Court of Appeals for the Fifth Circuit

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The Fifth Circuit affirmed the district court's grant of summary judgment for Nationwide in a suit seeking insurance coverage for an underlying complaint. The court held that the underlying complaint failed to allege an advertising injury covered under the policy because it did not allege the use of another's advertising idea, a trade dress claim, nor a claim for slogan infringement. View "Laney Chiropractic and Sports Therapy v. Nationwide Mutual Insurance Co." on Justia Law

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After a commercial warehouse sustained substantial fire damage, the owner of the warehouse (Emerald), filed suit against the lessee (Sunrise), the insurance agent, and the insurer. The Fifth Circuit affirmed the district court's grant of summary judgment to the insurance defendants, holding that Emerald's claims failed under Florida and Mississippi law. In this case, no Mississippi case recognizes a duty owed by an agent to a party in Emerald's position when the agent procures insurance for its insured. Emerald's claims under Florida law failed because it had never claimed status as a third-party beneficiary to the contract to procure insurance. View "Emerald Coast Finest Produce Co. v. Alterra American Insurance Co." on Justia Law

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The rights that flow through a subrogation clause allow an insurer to seek reformation of a contract between its insured and a third party. After Associated paid the portion of the underlying settlement that was in excess of the Westfield policy, Associated sought reimbursement from Scottsdale, an insurer that issued a commercial umbrella policy to Alpha. The Fifth Circuit held that the district court erred in reading reformation’s privity requirement to necessitate a specific connection to the Alpha-Scottsdale insurance policy. Rather, privity in Texas focuses on the relationship to a party. In this case, the subrogation clause in the Associated-Alpha policy provided that connection. Accordingly, the court reversed and remanded. View "Associated International Insurance Co. v. Scottsdale Insurance Co." on Justia Law

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This case involved an allision causing significant damage to a submerged moor line for a mobile offshore drilling unit used by Shell. Tesla, an offshore survey company, contracted with International to provide and operate the tow vessel. On appeal, International and Tesla challenged the district court's grant of summary judgment dismissing their indemnity and insurance claims. The Fifth Circuit held that a warning to Tesla's party chief that the tow vessel was moving too close to the moor line was a gratuitous act that had no effect on the outcome of the litigation. The court also held that none of the insurance policies were in the record nor was there any other evidence from which the policy language could be definitively discerned. Accordingly, the court vacated the district court's judgment as to Tesla's and International's insurance claims and remanded. View "International Marine, LLC v. Integrity Fisheries, Inc." on Justia Law