The excess carrier did to have to contribute to the defense and indemnity of the insures because the dissolution of one of the primary carrier meant full exhaustion had not been accomplished. Continental Cas. Co., et al. v. Argonaut Ins. Co., et al., 331 Ore. App. 26 (Or. Ct. App. 2024).      Schnitzer Steel Industries, Inc. and MMGL Corporation (insureds) were deemed potentially responsible parties by the EPA for the environmental cleanup of the Portland Harbor Superfund Site. The insureds submitted claims for defense and indemnity to their CGL insurers, including ..read more

    The Ninth Circuit affirmed the District Court's granting summary judgment to two insurers who denied coverage based upon inaccurate insurance applications. Hughes v. First National Insurance Company of America, 2024 U.S. App. LEXIS 6609 (9th Cir. March 20, 2024).     Plaintiff submitted a claim to First National Insurance Company of America and General Insurance Company of America when her property burned down. After learning that the property was used as a short-term rental and had suffered three prior lossses in the past five years, both insurers denied the claim ..read more

    The court found that the insurer failed to meet its burden on summary judgment seeking a judgment that faulty workmanship precluded coverge. Auto-Owners Ins., Co. v. AAA Discount Homes, LLC, 2024 U.S. Dist. LEXIS 48463 (S.D. Ga. March 19, 2024).     Heather Way sued AAA Discount Homes, LLC and Delta Transport & Management, Inc. for manufacturing defects found in a manufactured home which was delivered and assembled by Delta. Way had contracted with AAA for the construction, delivery, assembly, setting, tie down with brick underpinning steps and construction of front ..read more

    The Ninth Circuit reversed the District Court's denial of the insured's motion to amend a complaint asserting loss due to COVID-19. Worth Hotels, Inc. v. Fireman's Fund Ins. Co., 2024 U.S. App. LEXIS 8484 (9th Cir. April 9, 2024).     The Hotels sought coverage for business losses incurred because of the risk or presence of COVID-19. The District Court granted Fireman's Fund's motion to dismiss and denied the Hotels' motion to amend.     The Washington Supreme Court interpreted "direct physical loss" to require that the property had been physically destroyed o ..read more

  The court found that damage to the insured's home was not due to a covered collapse, but was caused by wood rot and termite damage. Pezzano v. Liberty Mut. Midatlantic Inc. Co., 2024 U.S. Dist. LEXIS 46971 (D. N.J. March 18, 2024).     When putting up a Christmas tree, the insured pulled a couch away from the wall and noticed a gap between the floor and the wall. She was not aware of when or how the gap was formed. Upon inspection, it was discovered that a beam was cracked in the crawl space. Efforts were made to shore the cracked beam.        ..read more

    The Court of Appeal reversed the trial court's granting of a motion for judgment on the pleadings, dismissing the insured's claim for loss due to the presence of COVID-19. Brooklyn Restaurants, Inc. v. Sentinel Ins. Co., Ltd., 2024 Cal. App. Unpub. LEXIS 1754 (Cal Ct. App. March 20, 2024).      Brooklyn secured a policy from Sentinel with an endorsement for "Limited Fungi, Bacteria, or Virus Coverage." ("Virus Endorsement"). In March 2020, Brooklyn submitted a claim for loss of business income due to the coronavirus at its restaurant, Harry's Coffee Shop. Sentinel ..read more

    The insured's claim for collapse of his roof and deck failed due to defective design and other exclusions under the policy. Dudar v. State Farm & Cas. Co., 2024 U.S. Dist. LEXIS 52706 (N.D. Ga. Feb. 6, 2024).      The insured submitted a claim to State Farm for damage to the roof ("Roof Claim"). State Farm's adjuster placed a ladder on the deck to access the roof and a portion of the deck collapsed. The insured then reported a claim to State Farm for damage to the deck ("Deck Claim"). The claims were denied and suit was filed.     The roof had leaked ..read more

    The Washington Supreme Court found there was coverage for resulting loss despite the original faulty contraction, an exclusion in the policy. Gardens Condominium v. Farmers Ins. Exchange, 2024 Wash. LEXIS 165 (Wash. March 14, 2024).      Farmers issued a policy to Gardens Condominium providing coverage for loss or damage caused by a "Covered Cause of Loss." "Covered Cause of Loss" was defined as any risk of direct physical loss. However, a loss was not covered if it was caused by an excluded event. The policy further provided that damage was caused by an excluded e ..read more

    The California Court of Appeal affirmed the trial court's decision that the defending insurer was not entitled to reimbursement of defense costs from another insurer based upon a subcontract and additional insured endorsement. Zurich Am. Ins. Co. v. Old Republic Gen. Ins. Corp., 2024 Cal. App. Unpub. LEXIS 1261 (Cal. Ct. App. Feb. 28, 2024).      Martin McNerney Development Company (McNerney) entered a construction contract to perform seismic upgrades and tenant improvements for condominiums. McNerney and Broadway Mechanical Contractors, Inc. (Broadway) entered a ..read more

    The court determined that coverage for a loss by fire could not be denied when the insured's son failed to appear for a examination under oath (EUO). Adekola v. Allstate Vehicle & Prop. Ins. Co., 2024 U.S. Dist. LEXIS 27125 (E.D. Pa. Feb. 16, 2024).     Plaintiff had a homeowners policy with Allstate. Plaintiff - Michele Adekola - was the named insured under the policy. After the fire, Allstate provided payments for temporary housing. Allstate requested examinations under oath of Plaintiff and her son, Nico. Plaintiff and her son were examined by Zoom. Allstate then ..read more