Justia Insurance Law Opinion Summaries

John Zeverino owned a semi-tractor that was leased to Taylor Truck Line. In 2009, the tractor was involved in a multi-vehicle accident that occurred while Zeverino was on his way to a maintenance facility for repairs to the tractor. Acceptance Casualty Insurance Company and Great West Casualty Company both issued liability insurance policies for the semi-tractor. Acceptance provided a non-trucking use policy, and Great West provided a commercial truckers’ policy. Each insurer filed a motion for summary judgment asserting the other was responsible for coverage for the accident. The circuit court concluded that the Acceptance policy provided coverage. The court of appeals affirmed. The Supreme Court affirmed, holding that Acceptance’s non-trucking use policy provided coverage for the accident, and neither of the two exclusions in Acceptance’s policy precluded coverage. View "Casey v. Smith" on Justia Law

Steven Thomas & Sons (T&S), LLC did excavation and soil compaction work for an addition to a school building in the Kimball School District. The School District was later informed that problems in the building caused by settling issues were due to negligently performed work by T&S. The School District brought suit against T&S and other defendants. T&S’s commercial general liability insurer, Employers Mutual Casualty Company (EMC) withdrew from contributing to T&S's defense, asserting that the policy excluded coverage for continuous or progressive property damage that occurred before the effective date of the policy, and the problems to the building were observed before the 2007 policy date. In 2005 and 2006, T&S was insured by AMCO Insurance Company. Ultimately, AMCO paid defense costs and indemnified T&S for its share of the arbitration award in favor of the School District. AMCO subsequently brought a declaratory judgment action against EMC seeking a ruling that EMC had a joint duty to defend T&S and a declaration that EMC’s policy exclusion was void as against public policy. The circuit court granted summary judgment in favor of EMC. The Supreme Court affirmed, holding that EMC’s exclusion did not violate public policy. View "AMCO Ins. Co. v. Employers Mut. Cas. Co." on Justia Law

Plaintiffs purchased a home that a pre-closing inspection revealed had corrosion on the oil heating system in the basement. Although the boiler and oil tank were replaced prior to the sale of the home, the oil feed line buried beneath the concrete floor in the basement was not replaced. After Plaintiffs discovered an oil leak at the feed line, they initiated claims under their homeowners’ insurance policy issued by Defendant. Defendant denied Plaintiffs’ claim. Plaintiffs filed a complaint against Defendant for breach of contract. The trial justice granted summary judgment in favor of Defendant, concluding that Plaintiffs’ claim was caused by gradual corrosion of an oil fuel feed line, not by a sudden or accidental loss, and the claim was therefore barred by the clear and unambiguous terms of the policy. The Supreme Court affirmed, holding that because the undisputed evidence indicated that the damage to Plaintiffs’ property was caused by corrosion, which was not covered by their insurance policy, there were no genuine issues of material fact, and Defendant was entitled to judgment as a matter of law. View "Nunez v. Merrimack Mut. Fire Ins. Co." on Justia Law

Plaintiff filed a complaint against Metropolitan Property and Casualty Insurance Company and other defendants, alleging multiple counts. A jury found Defendants liable for abuse of process and awarded compensatory and punitive damages against each defendant. On May 31, 2012, judgments were entered against Defendants. On August 31, 2012, Metropolitan filed an appeal from the May 31, 2012 judgment, and on September 18, 2012, Plaintiff filed a notice of cross-appeal from the May 31, 2012 judgment. Metropolitan moved to dismiss Plaintiff’s cross-appeal, arguing that it was untimely because it was not filed within the initial twenty-day appeal period that began to run after entry of the August 20, 2012 orders. The trial justice denied Metropolitan’s motion to dismiss, concluding that Plaintiff’s cross-appeal was timely because it was filed within twenty days of Metropolitan’s August 31, 2012 notice of appeal. The Supreme Court affirmed, holding that Plaintiff’s September 18, 2012 notice of cross-appeal was timely because it was filed within the twenty-day period triggered by Metropolitan’s August 31, 2012 notice of appeal. View "Miller v. Metro. Prop. & Cas. Ins. Co." on Justia Law

Employee worked for Employer from 1977 through the date of the trial of this matter. Employee began having problems with his arms and hands in 2005. In 2009, Employee had carpal tunnel release surgery performed on his arms. Employee began having problems with his right thumb shortly after his surgeries. A surgical procedure to release the thumb was performed in 2010. In 2013, the trial court awarded permanent partial disability benefits to Employee but ruled that Employee’s injury should be apportioned to the arm, which was subject to an impairment “cap.” Employee appealed, arguing that the award should have been apportioned to the thumb, which was not subject to the cap. The Supreme Court affirmed, concluding that the trial court correctly chose to apportion Employee’s injury to the arm. View "Evans v. Fidelity & Guar. Ins. Co. " on Justia Law

In 2006, Appellant injured her lower back while working for Employer, who was self-insured. Later that year, Employer discharged Appellant for violating the company’s absenteeism policy and failing to accept the light-duty work offered. The Industrial Commission denied Appellant’s request for temporary total disability (TTD) compensation, concluding that Appellant had abandoned her employment and that the abandonment barred payment of TTD compensation. Three and a half years after the denial of benefits, Appellant filed a complaint for a writ of mandamus. The appellate court denied the writ, concluding that the Commission did not abuse its discretion when it denied Appellant’s request for TTD benefits, as her conduct had amounted to a voluntary abandonment of employment. The Supreme Court affirmed, holding that the Commission did not abuse its discretion when it denied Appellant’s request for compensation, as the Commission’s order was supported by the evidence. View "State ex rel. Jacobs v. Indus. Comm'n" on Justia Law

Interline purchased a series of commercial liability policies from Chartis. The policies contained an exclusion for violations of any statute that addresses transmitting any material or information (the "Exclusion"). Interline was sued for violating the Telephone Consumer Protection Act, 47 U.S.C. 227 et seq., and Chartis denied coverage based on the Exclusion. The court affirmed the district court's grant of Chartis's motion for judgment on the pleadings where the Exclusion was no ambiguous and the Exclusion was not against public policy. View "Interline Brands, Inc., et al. v. Chartis Specialty Ins. Co." on Justia Law

Plaintiffs, property owners, filed a quiet title action against owners of adjacent lots, seeking a declaration that express easements granted in favor of the adjacent lots were invalid. The defendants filed counterclaims asserting that the express easements were valid. Plaintiffs submitted to Commonwealth Land Title Insurance Company ("Commonwealth") a claim for defense pursuant to a policy of title insurance issued by Commonwealth insuring Plaintiffs’ property, but Commonwealth denied the claim. In the quiet title action, the district court extinguished the express easements and denied the counterclaims but concluded that the defendants possessed implied easements. While the quiet title action was pending, Plaintiffs filed the instant action against Commonwealth, seeking a determination that Commonwealth breached its duty under the policy by refusing to provide a defense to the counterclaims. The district court granted summary judgment in favor of Commonwealth. The Supreme Court affirmed, holding that the district court did not err in sustaining Commonwealth’s motion for summary judgment because Commonwealth did not violate its contract with Plaintiffs by denying coverage or indemnification. View "Woodle v. Commonwealth Land Title Ins. Co." on Justia Law

This case had its origins in a property damage action brought by Jason and Gina Corrick against B&B Transit, Inc. B&B Transit filed a notice and coverage claim with its insurer, Montpelier US Insurance Company. Montpelier eventually settled the case against B&B Transit. While the Corricks’ complaint was still pending, Respondents, including B&B Transit, filed a first-party bad faith claim against Petitioners, including Montpelier and its national coverage counsel, Charlston, Revich & Wollitz (“CRW”). Respondents subsequently served discovery requests on Petitioners. After CRW opposed disclosure of certain requested documents, Respondents filed a motion to compel disclosure of the documents. The circuit court entered an order requiring CRW to disclose certain documents. Petitioners sought a writ of prohibition to prevent enforcement of the circuit court’s discovery order. The Supreme Court granted the writ of prohibition as moulded, concluding that part of the circuit court’s order permitting discovery of documents sought by Respondents was prohibited from enforcement because the documents were protected under the attorney-client privilege. View "State ex rel. Montpelier US Ins. Co. v. Hon. Bloom" on Justia Law

RB Entertainment is one of a complicated web of at least seventeen different companies that Appellant Jeffrey Cohen allegedly owns and controls. Central to this appeal was one issue: whether the delinquency proceedings for Indemnity Insurance Corporation, RRG violated the constitutional due process rights of Cohen or Co-Appellant RB Entertainment Ventures. Co-Appellant IDG Companies, LLC (Indemnity's managing general agent), was also one of the Cohen-affiliated entities. After uncovering evidence that Cohen had committed fraud in his capacity as Indemnity's CEO and that Indemnity might be insolvent, the Delaware Insurance Commissioner petitioned the Court of Chancery for a seizure order. The Delaware Uniform Insurers Liquidation Act. Based on the detailed allegations and supporting evidence presented by the Commissioner, the Court of Chancery granted that seizure order, which, among other things, prohibited anyone with notice of the proceedings from transacting the business of Indemnity, selling or destroying Indemnity’s assets, or asserting claims against Indemnity in other venues without permission from the Commissioner. The seizure order also prohibited anyone with notice of the proceedings from interfering with the Commissioner in the discharge of her duties. Cohen, who founded Indemnity and had served as its President, Chairman, and CEO, resigned from Indemnity's board during the ensuing investigation and the board removed him from his managerial positions. After his resignation, Cohen interfered with the Commissioner's efforts to operate Indemnity in various ways. The Commissioner returned to the Court of Chancery several times, first seeking an amendment to the seizure order to address Cohen's behavior and then seeking sanctions against him. The Court of Chancery entered a series of orders that increased the restrictions on Cohen's behavior and imposed stiffer sanctions upon him. Cohen argued that he was denied due process at several junctures during the Court of Chancery proceedings. Because Cohen's claims alleged violations of his right to due process, the focus of the Supreme Court's opinion was on whether Cohen was given notice of the allegations against him and a fair opportunity to present his side of the dispute. Having carefully examined the record in this case, the Court concluded that he was given that opportunity: no violation of Cohen's or the affiliated entities' due process rights occurred. View "Cohen, et al. v. State of Delaware, et al." on Justia Law