Justia Insurance Law Opinion Summaries

Hyland was a passenger in a car owned by Perkins and driven by Smith, age 16. Smith smashed the car into two parked vehicles, seriously injuring Hyland. Smith was convicted of aggravated reckless driving. Neither Smith nor her parents had auto insurance. Perkins had insurance with Liberty Mutual, covering her family, including her daughter Risby and anyone driving the car with the family’s permission. Smith told Liberty Mutual that Risby gave her the keys during a party; Risby denied doing that and said that she gave the keys to “Rob,” who was never identified. The police reported that Smith told many incompatible stories. Liberty Mutual would not provide a defense or indemnity. Smith defaulted. A state court entered a $4.6 million judgment. Smith assigned to Hyland whatever claim she had against Liberty Mutual. The district court concluded that Liberty Mutual’s failure either to defend or to seek a declaratory judgment of non-coverage violated Illinois law, making it liable for the entire judgment, although the policy provided only $25,000 per person in coverage. The Sixth Circuit vacated and remanded for the entry of a judgment for $25,000 plus interest; damages for a breach of the duty to defend are measured by the consequences proximately caused by the breach. The maximum loss caused by this failure to defend is $25,000 View "Hyland v. Liberty Mutual Fire Insurance Co." on Justia Law

Hyland was a passenger in a car owned by Perkins and driven by Smith, age 16. Smith smashed the car into two parked vehicles, seriously injuring Hyland. Smith was convicted of aggravated reckless driving. Neither Smith nor her parents had auto insurance. Perkins had insurance with Liberty Mutual, covering her family, including her daughter Risby and anyone driving the car with the family’s permission. Smith told Liberty Mutual that Risby gave her the keys during a party; Risby denied doing that and said that she gave the keys to “Rob,” who was never identified. The police reported that Smith told many incompatible stories. Liberty Mutual would not provide a defense or indemnity. Smith defaulted. A state court entered a $4.6 million judgment. Smith assigned to Hyland whatever claim she had against Liberty Mutual. The district court concluded that Liberty Mutual’s failure either to defend or to seek a declaratory judgment of non-coverage violated Illinois law, making it liable for the entire judgment, although the policy provided only $25,000 per person in coverage. The Sixth Circuit vacated and remanded for the entry of a judgment for $25,000 plus interest; damages for a breach of the duty to defend are measured by the consequences proximately caused by the breach. The maximum loss caused by this failure to defend is $25,000 View "Hyland v. Liberty Mutual Fire Insurance Co." on Justia Law

Stacy Triplett filed three lawsuits against her former employer, Southern Hens, all stemming from an incident in which Triplett, while working, witnessed the gruesome death of a coworker. This incident caused Triplett mental anguish leading to an award of workers’ compensation benefits. After Triplett allegedly incurred some trouble in collecting her award of workers’ compensation benefits, she sued Southern Hens and Southern Hens’s carrier, Liberty Mutual. Triplett’s first lawsuit against Southern Hens, for failure to pay, ultimately was dismissed. Triplett then filed a second lawsuit against Southern Hens for failure to report; Triplett failed to serve Southern Hens within 120 days, as required under Mississippi Rule of Civil Procedure 4(h). With no official court action on her second suit, and admittedly knowing that she could not show good cause for failure to serve in the second suit, Triplett filed a third suit against Southern Hens , like the second, was for failure to report. Aware of the second suit, the circuit court dismissed Triplett’s third suit as an impermissible duplicative suit. Triplett appealed. Finding no error, the Mississippi Supreme Court affirmed. View "Triplett v. Southern Hens, Inc." on Justia Law

Stacy Triplett filed three lawsuits against her former employer, Southern Hens, all stemming from an incident in which Triplett, while working, witnessed the gruesome death of a coworker. This incident caused Triplett mental anguish leading to an award of workers’ compensation benefits. After Triplett allegedly incurred some trouble in collecting her award of workers’ compensation benefits, she sued Southern Hens and Southern Hens’s carrier, Liberty Mutual. Triplett’s first lawsuit against Southern Hens, for failure to pay, ultimately was dismissed. Triplett then filed a second lawsuit against Southern Hens for failure to report; Triplett failed to serve Southern Hens within 120 days, as required under Mississippi Rule of Civil Procedure 4(h). With no official court action on her second suit, and admittedly knowing that she could not show good cause for failure to serve in the second suit, Triplett filed a third suit against Southern Hens , like the second, was for failure to report. Aware of the second suit, the circuit court dismissed Triplett’s third suit as an impermissible duplicative suit. Triplett appealed. Finding no error, the Mississippi Supreme Court affirmed. View "Triplett v. Southern Hens, Inc." on Justia Law

In this insurance coverage dispute, the district court erred in concluding that Plaintiff’s claim under the Unfair Trade Practices Act (UTPA) and the Declaratory Judgment Act should be dismissed.Plaintiff was involved in an accident while she was a passenger in a car driven by Kevin Gallivan. Peter Kirwan owned the vehicle, and Safeco Insurance Company insured Kirwan. Mid-Century Insurance Company insured Gallivan. Plaintiff sued Safeco and Mid-Century (collectively, Defendants), and the parties entered into a settlement agreement. Plaintiff subsequently brought this lawsuit against Defendants bringing claims seeking declaratory judgment and violations under the UTPA and alleging that Defendants used the collateral source statute to justify reduction in her damages notwithstanding that the collateral source statute was inapplicable. The district court granted Defendants’ motion to dismiss. The Supreme Court reversed, holding (1) even if Defendants had a reasonable basis to apply the collateral source statute, the court failed to consider the plain language of the statute and whether it was applicable in Plaintiff’s case; and (2) Plaintiff sufficiently pled an independent cause of action under the UTPA to overcome Defendants’ joint motion to dismiss. View "Marshall v. Safeco Insurance Co. of Illinois" on Justia Law

The Supreme Court affirmed the order of the circuit court granting Plaintiff’s petition for declaratory judgment. In the order, the circuit court ruled that Erie Insurance Property and Casualty Company was required to provide Plaintiff, Erie’s insured, with the statutory minimum amount of uninsured motorist coverage for an ATV that Plaintiff was towing when he was struck by an at-fault, uninsured motorist. The Supreme Court held (1) the circuit court correctly granted declaratory judgment in favor of Plaintiff on the coverage issue; and (2) Erie’s challenge to the circuit court’s order denying its motion to dismiss Plaintiff’s separate claims for common law bad faith and violation of the Unfair Trade Practices Act was an interlocutory matter and not subject to appeal at this time. View "Erie Insurance Co. v. Dolly" on Justia Law

The Supreme Court affirmed the order of the circuit court granting Plaintiff’s petition for declaratory judgment. In the order, the circuit court ruled that Erie Insurance Property and Casualty Company was required to provide Plaintiff, Erie’s insured, with the statutory minimum amount of uninsured motorist coverage for an ATV that Plaintiff was towing when he was struck by an at-fault, uninsured motorist. The Supreme Court held (1) the circuit court correctly granted declaratory judgment in favor of Plaintiff on the coverage issue; and (2) Erie’s challenge to the circuit court’s order denying its motion to dismiss Plaintiff’s separate claims for common law bad faith and violation of the Unfair Trade Practices Act was an interlocutory matter and not subject to appeal at this time. View "Erie Insurance Co. v. Dolly" on Justia Law

The Fifth Circuit affirmed the district court's dismissal of plaintiffs' suit based on forum non conveniens. The court held that Louisiana Revised Statute 22:868 does not evince a public policy against forum-selection clauses in insurance contracts. Therefore, the court found that the parties' insurance policy contained an enforceable forum-selection clause requiring litigation in New York state court. Furthermore, the public interest factors did not weigh in favor of keeping this case in Louisiana. View "Al Copeland Investments, LLC v. First Specialty Insurance Corp." on Justia Law

A wine dealer sold millions of dollars’ worth of counterfeit wine to an unsuspecting wine collector. When the collector discovered the fraud, he filed an insurance claim based on his “Valuable Possessions” property insurance policy. The insurance company denied the claim. The collector sued for breach of contract. The trial court ruled in favor of the insurance company, sustaining its demurrer. The Court of Appeal concurred with the trial court: the collector suffered a financial loss, but there was no loss to property that was covered by the property insurance policy. View "Doyle v. Fireman's Fund Insurance Co." on Justia Law

A wine dealer sold millions of dollars’ worth of counterfeit wine to an unsuspecting wine collector. When the collector discovered the fraud, he filed an insurance claim based on his “Valuable Possessions” property insurance policy. The insurance company denied the claim. The collector sued for breach of contract. The trial court ruled in favor of the insurance company, sustaining its demurrer. The Court of Appeal concurred with the trial court: the collector suffered a financial loss, but there was no loss to property that was covered by the property insurance policy. View "Doyle v. Fireman's Fund Insurance Co." on Justia Law