Coverage

To Avoid Further Litigation On “Settled” Matters, It Is Essential That A Settlement Agreement Does Not Leave Loose Ends

Settlement agreements typically signify the end of a legal dispute. However, to avoid a headache and potential for further litigation on “settled” matters, it is essential that the settlement agreement does not leave any loose ends. In Cincinnati Insurance Company v. Acadia Insurance Company, 2021 WL 6071718 (4th Dep’t 2021), a woman fell on property owned by 60 LBC, insured by Plaintiff...Read More

PA Court Holds COVID-19 Excluded From “Property Damage” Coverage Under All-Risk Property Insurance Policy

In a recent case from the Eastern District of PA, Maggios Famous Pizza, Inc. v. Selective Ins. Co. of the Sw., the court granted the defendant’s summary judgment against the plaintiff who sought coverage under an all-risk property policy. Finding that COVID-19 related loss of business did not qualify as actual damage to the property required by the policy.  The plaintiff in the case owned a...Read More

Third Circuit Finds Broad Duty To Defend In Trademark Suit (PA)

In Vitamin Energy, LLC v. Evanston Insurance Company, the United States Court of Appeals for The Third Circuit held the defendant insurer had a duty to defend its insured from a trademark suit. It broadly interpreted Pennsylvania law in favor of insureds. The case stemmed from an underlying lawsuit filed by 5-hour Energy against Vitamin Energy for trademark infringement, among other claims. In...Read More

Art Gallery’s Covid-Related Losses Are Not Covered By Insurance Policy

In 10012 Holdings, Inc., d/b/a Guy Hepner v. Sentinel Insurance Company, LTD., the United States Court of Appeals for the Second Circuit affirmed the District Court’s decision to dismiss plaintiff’s claim for failure to state a proper basis for relief. Guy Hepner, a New York City-based fine arts gallery displaying the works of Andy Warhol, Pablo Picasso, and many others, filed suit against its...Read More

Additional Insured Language On A Certificate Of Insurance Held Insufficient To Alter Policy Language & Create A Defense And Indemnification Obligation

In Chipotle Mexican Grill, Inc. v. RLI Ins., 2021 N.Y. Slip Op 06604 (2d Dep’t, November 24, 2021), the New York Appellate Division, Second Department, recently addressed the issue of whether additional insured language in a Certificate of Insurance created a coverage obligation on the part of an insurer. In that case, Chipotle hired Piece Management, Inc. (“PMI”) to perform rodent prevention...Read More

Pennsylvania Federal Court Continues Trend Of Finding No Coverage For Covid-19 Business Interruption Losses

As we have reported, policyholders have largely been unsuccessful in convincing Federal courts to declare that coverage exists for business interruption claims as a result of the COVID-19 pandemic. The United States District Court for the Eastern District of Pennsylvania continued this trend in its recent decision in Delaware Valley Management, LLC, et al. v. Continental Casualty Company. The...Read More

Automobile Regular Use Exclusion Hits the Red Light of the Motor Vehicle Financial Responsibility Law (PA)

On October 22, 2021, in Rush v. Erie Insurance Exchange, 2021 Pa.Super 215 (2021), the Pennsylvania Superior Court held that an Erie Insurance Exchange (“Erie”) regular use exclusion was unenforceable because it modified the clear and unambiguous requirements of Pennsylvania’s Motor Vehicle Financial Responsibility Law, 75 Pa.C.S. §§ 1701-99.7 (“MVFRL”), by functionally precluding insureds...Read More

Claims Of Bad Faith And Vicarious Liability Fall Like Dominoes With Speculative Damages (PA)

In an action brought by the Moses Taylor Foundation (the “Foundation”) in the Middle District of Pennsylvania, it sought to recover damages for an alleged breach of contract by Coverys and its primary insurer (“Coverys”) for failure to negotiate an appropriate settlement in a previous lawsuit. Moses Taylor, additionally, uniquely asserted a claim for bad faith for almost exhausting the...Read More

New York Governor Signs New Law Prohibiting Insurers From Refusing To Issue Or Renew Policies Based Solely On Breed of Dog

On October 30, 2021, New York Governor Kathy Hochul signed Senate Bill 4254, preventing insurance companies from discriminating against homeowners based on the breed of dog they own. The new law provides, “with respect to homeowners’ insurance policies…no insurer shall refuse to issue or renew, cancel, charge or impose an increased premium or rate…based solely upon harboring or owning any dog...Read More

Federal Court In Pennsylvania Reaffirms No Coverage Without Direct Physical Loss

Policyholders have largely been unsuccessful in convincing Federal courts to declare that coverage exists for business interruption claims as a result of the COVID-19 Pandemic. Greenwood Racing Inc. operates Parx Casino, a horse racing and casino gaming complex in Bensalem, Pennsylvania and sought a declaratory judgment that would require its insurers to cover losses sustained by Greenwood and...Read More