Author: Colleen Hayes

Recent Litigation Tracking Indicates Early Wins For Insurers In COVID Cases

Recent court decisions on “business interruption” coverage claims related to COVID-19 seem to be tentatively favoring insurers with respect to claims for lost income during the COVID-19 pandemic. Several jurisdictions have ruled for insurance companies, including state courts in California, Michigan and the District of Columbia, as well as in federal courts in Texas and California....Read More

Insurer Benefits from New Jersey Appellate Division’s Reading of Assault and Battery Exclusion (NJ)

In Pickett v. Moore’s Lounge, the Appellate Division had to interpret an assault and battery exclusion set forth in a tavern’s CGL insurance policy. A patron of Moore’s had shot and killed Roger Pickett while at the tavern after a verbal fight. The Estate of Pickett filed a seven-count complaint against the tavern, including claims of wrongful death, a violation of a liquor statute, negligent...Read More

Pennsylvania Supreme Court Interprets Replacement Cost Coverage to Allow Deductions for GCOP Unless Insured Actually Repairs (PA)

The Pennsylvania Supreme court in Kurach v. Truck Insurance Exchange recently held that insurers are entitled to deduct General Contractor’s Overhead & Profit (GCOP) in a policy that provided Replacement Cost Coverage “unless and until the insureds undertook repairs of the damaged property, even though the services of a general contractor were reasonably likely to be needed to complete the...Read More

Wedding Venue Brings Federal Action Against Governor Cuomo Over 50 Person Limit (NY)

In an attempt to limit the transmission of COVID-19, Governor Cuomo issued a mandate limiting the amount of people allowed at a social or recreational gathering to no more than fifty (50) people. In response to this Order, on August 28, 2020, New York wedding venues field a federal class action lawsuit against Governor Cuomo and other state officials. In Bill & Ted’s Riviera, Inc.,...Read More

In For A Penny, In For Two Pounds? (NY)

In a recent case decided by the New York Supreme Court, the court warns insurers that “in for a penny” might mean more than “in for a pound,” but rather two pounds. In 101 West 78th Street v. Sweet Construction and New York Mercantile and General Insurance Company, (2020 NY Slip Op 32737), the court provided a lengthy opinion detailing a lengthy insurance dispute between an insurer and both...Read More

Consumer Fraud Act Claim or a Product Liability Claim? NJ Supreme Court Says Why Not Both? (NJ)

In Sun Chemical Corporation v. Fike Corporation, the Supreme Court grappled with the issue of whether a New Jersey Consumer Fraud Act claim can be based on a claim that is also actionable under the New Jersey Product Liability Act. Sun Chemical Corporation purchased an explosion isolation and suppression system from Fike Corporation to prevent and contain explosions in its new dust collection...Read More

Pennsylvania Appellate Court Requires New Stacking Waiver After Removal of a Vehicle From Policy (PA)

The Pennsylvania appellate court, in Franks v. State Farm, recently held that insurers must obtain a new stacking waiver after the insured removes a vehicle under the policy. The factual pattern in the instant matter was a matter of first impression for Pennsylvania Courts. Specifically, although it is clear that an addition of a vehicle to an existing multi-vehicle policy requires a new...Read More

Report Indicates Nearly 300 Federal Lawsuits Have Been Filed As A Result Of The Coronavirus Pandemic

Nearly 300 federal lawsuits have been filed in the months of March and April 2020, which stem from the COVID-19 pandemic, a number that is likely to continue to expand. Lex Machina found 395 new lawsuits using COVID-19 related terms over the two-month period. Among those suits, 287 stemmed from the COVID-19 crisis, the company reported. Contracts, insurance and employment were the practice...Read More

NY Court Of Appeals Hints That “But Everyone Was Doing It” May Rebut Labor Law Defense of Sole Proximate Cause (NY)

In Biaca-Neto v. Boston Rd II Hous Dev Fund Corp.,the New York Court of Appeals’ recent ruling offers some insight into how courts will rule regarding sole proximate cause defenses in New York Labor Law cases. Under section 240(1) of the New York Labor Law, construction workers who are injured at job sites can recover if the injury is the direct consequence of a failure to provide adequate...Read More

EDPA Holds Plaintiff’s Conclusory Allegations of Insurer Bad Faith Insufficient (PA)

In Harris v. Allstate, the plaintiff brought an action against her insurer, alleging the insurer breached the terms of the policy and engaged in bad faith conduct. By way of brief background, it was alleged that Allstate issued a policy to plaintiff. It was further alleged that a covered “peril” occurred, which caused “direct physical damage” to the plaintiff’s property. Plaintiff alleged that...Read More