Fifth Circuit Reverses Summary Judgment Awarded to Insurer on Cyber Risk Claim
Insurance Law Hawaii
by Tred Eyerly
12h ago
    The Fifth Circuit reversed the district court's grant of summary judgment in favor of the insurer on a cyber risk claim. Southwest Airlines Co. v. Liberty Ins. Underwriters, Inc., 2024 U.S. App. LEXIS 996 (5th Cir. Jan. 16, 2024).     Southwest suffered a massive computer failure, which resulted in a three-day disruption of its flight schedule. Approximately 475,839 Southwest customers experienced either a flight cancelation or a delay of two hours or more.      Southwest had a cyber risk policy issued by non-party AIG, Inc. The policy included a provisio ..read more
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Stay of Coverage Case Appropriate While Court Determines Arbitrability of Dispute
Insurance Law Hawaii
by Tred Eyerly
3d ago
    The Fifth Circuit vacated a discovery order issued by the district court and remanded the case for issuance of a stay while the arbitrability of the coverage dispute was reviewed. Cameron Parish Recreation #6 v. Indian Harbor Ins. Co., et al., 2024 U.S. App. LEXIS 3804 (5th Cir. Feb. 19, 2024).     The plaintiffs purchased surplus lines polices from various insurance companies to provide coverage for commercial properties. The policies included an arbitration provision for resolving any disputes. After plaintiffs were denied coverage for damage to their properties from ..read more
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Fifth Circuit Reverses and Remands Denial of Cyber Claim
Insurance Law Hawaii
by Tred Eyerly
1w ago
    The Fifth Circuit Court of Appeals reversed the district court's finding that Southwest had no coverage for a cyber claim. Southwest Airlines Co. v. Liberty Ins, Underwriters, Inc., 2024 U.S. App. LEXIS 996 (5th Cir. Jan. 16, 2024).      On July 20, 2016, Southwest suffered a massive computer failure, which resulted in a three-day disruption of its flight schedule. Approximately 475,839 Southwest customers experienced either a flight cancelation or a delay of two hours or more. Southwest held a cyber risk policy from AIG which included a provision for "System Failu ..read more
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Court Grants Insurer's Motion for Summary Judgment After Insured Fails to Provide Evidence of Systemic Collapse
Insurance Law Hawaii
by Tred Eyerly
1w ago
    With the insurer conceding that there was evidence of potential collapse at portions of eight specific building locations, the court granted the insurer's motion for partial summary judgment in determining no additional buildings suffered from collapse. Exec. 1801 LLC v. Eagle W. Ins. Co., 2024 U.S. Dist. LEZXIS 5923 (D. Or. Jan. 11, 2024).      Executive 1801 owned a group of six buildings with eighty-six residential units. The court previously granted partial summary judgment on Executive 1801's rain damage claim, leaving only claims regarding collapse. Eagle ins ..read more
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Insurer May Pursue Independent Subrogation Claims After Plaintiff's Claims Are Dismissed
Insurance Law Hawaii
by Tred Eyerly
2w ago
    The Hawaii Supreme Court determined that a subrogee insurance company that intervened had an independent right to continue pursuing its claims agains the tortfeasor that were not asserted by the subrogor employee even after the employee's claims were dismissed. Park v. Dongbu Ins. Co., Ltd., 2024 Haw. LEXIS 8 (Feb. 5, 2024).     Park was a barteneder at a sports bar. Three off-duty police officers came to the bar. After several drikns, one officer unholstered his firearm and tried to load it. The gun was already loaded, however, and Park was hit when the gun fired. Park ..read more
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Health Care Endorsement Allows Insured to Escape Dismissal of COVID-19 Claim
Insurance Law Hawaii
by Tred Eyerly
2w ago
    Agreeing with the district court that the insured could not demonstrate "direct physical loss" due the onset of COVID-19, the First Circuit overruled the dismissal based on a health care endorsement. Lawrence Gen. Hosp. v. Continental Casualty Co., 2024 U.S. App. LEXIS 676 (1st Cir. Jan. 10, 2024).     The health care endorsement included "Disease Contamination Coverage." Coverage was triggered by an "evacuation or decontamination order at a covered location by the National Center for Disease Control, authorized public health office or governmental authority becaus ..read more
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Appraisal Presentation at ABA Insurance Coverage Conference
Insurance Law Hawaii
by Tred Eyerly
2w ago
   Our panel presented this morning at the Insurance Coverage Litigation Committee’s annual seminar this morning. We addressed “Appraisals: What’s My Loss?” Members of our panel were Judge Keith Hiraoka from the Hawaii Intermediate Court of Appeals, Rina Carmel from Anderson McPharlin & Conners, LLP; John Vishneski from Reed Smith; Karin Aldama from Perkins Coie; and me.  ..read more
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Appraisal Can Go Forward Prior to Resolution of Coverage Dispute
Insurance Law Hawaii
by Tred Eyerly
2w ago
    The Florida Supreme Court found that a trial court could compel an appraisal of the insured's loss prior to resolving coverage issues. Am. Coastal Ins. Co. v. San Marco Villas Condo. Ass'n, Inc., 2024 Fla. LEXIS 185 (Fla. Feb. 1, 2024).      Hurricane Irma damaged San Marco Condominium Association's buildings. American Coastal paid $192,629.75 for the loss. San Marco estimated the damage to be in excess of eight million dollars. San Marco demanded an appraisal under the policy. American Coastal refused to submit to appraisal because it was premature as its investig ..read more
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Court Finds Matching of Damaged Materials is Required by Policy
Insurance Law Hawaii
by Tred Eyerly
3w ago
    The court granted, in part, the insured's motion for summary judgment by finding that matching roof tiles were required under the policy. Bertisen v. Travelers Home and Marine Ins. Co., 2024 U.S. Dist. LEXIS 3907 (D. Colo. Jan. 8, 2024).      The insureds sued Travelers for breach of contract, common law bad faith, and unreasonable delay or denial of benefits. They alleged that their residence was damaged by a hailstorm and that Travelers breached their policy and acted in bad faith in the handling of the claim. The insureds demanded an appraisal to deter ..read more
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No Duty to Defend Construction Defect Claims under Kentucky Law
Insurance Law Hawaii
by Tred Eyerly
3w ago
    The federal district court determined that the insurer was not obligated to defend construction defect claims under Kentucky law. Westfield Ins. Co. v. Kentuckiana Commercial Concrete, LLC, 2023 U.S. Dist. LEXIS 222674 (W.D. Ky. Dec. 14, 2023).      HRB, the owner of an apartment complex, filed an arbitration demand against the general contractor, Doster Commercial Construction, for allegedly doing faulty concrete work in the construction of the apartments. Doster added its concrete subcontrator Kentuckiana Commercial Concrete - and 16 other subcontractors - t ..read more
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