Pennsylvania

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

Bad Day At The Track For Plaintiff In Its Attempt To Have Its Declaratory Judgment Action Decided In State Court

In Greenwood Racing v. American Guarantee & Liability Insurance Co. and Steadfast Insurance Co., the District Court for the Eastern District of Pennsylvania denied Greenwood Racing’s (“Greenwood”) motion to remand the case to state court. The court reasoned that although it could have abstained from jurisdiction, there were no novel issues of state law requiring remand. Greenwood, like...Read More

Defendant’s Motion To Amend Its Answer To Admit Averments It Previously Denied Two Years Previously Includes A Novel Attempt To Avoid Punitive Damages At Trial (PA)

A Lackawanna County judge has granted a defendant’s motion to amend his answer to admit averments that he had previously denied when filing the answer more than two years earlier.  In Bellersen v. Gill, Plaintiff, Gina Bellersen, was injured in a rear- end, chain collision motor vehicle accident in October 2018.   Defendant Gill was the last vehicle in the chain, and upon filing his initial...Read More

Bad Faith Underinsured Motorist Claim Requires at Least SOME Bad Faith (PA)

In a recent Eastern District Court of Pennsylvania case, Bond v. Geico, the court dismissed an underinsured motorist claim against the insurer where the policyholder brought vague, unsubstantiated, conclusory allegations of bad faith in the claim handling. Plaintiff in the case was an underinsured motorist under Pennsylvania statute who sought underinsured coverage from Geico (his own UIM...Read More

Let The Fact Finders Decide (PA)

In Daniel Spisak v. Advanced Auto Parts, Inc., Mr. Spisak brought a negligence claim against Advanced Auto Parts for failing to properly maintain its parking lot after a winter storm. On December 22, 2017, Mr. Spisak was dropping off a delivery of car batteries to an Advanced Auto Parts in Connecticut when he slipped and fell on an icy patch located in the company’s parking lot. Spisak...Read More

Justifiable Reliance – Not Always A Jury Question (PA)

A recent case from the Pennsylvania Superior Court is instructive for defendants and their carriers defending against fraud and misrepresentation claims. See e.g. Patel v. Kandola Real Estate, LP, et. al, 2021 Pa. Super 219 (Pa Super. Ct. Nov. 8, 2021). The case involved a lease agreement for a gas station and truck stop complex. Patel saw an advertisement on the internet and called to...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

Court Upholds Abandoned Vehicle Court (PA)

In Nothstein v. Cochran, the Court of Common Pleas ruled in favor of the defendant tow truck company after following the proper procedure to obtain title for the Plaintiff’s abandoned vehicles. Plaintiffs in this case left their vehicles in a parking lot owned by a third party. The defendant towed the plaintiffs’ cars from the lot and stored the vehicles in their own impound lot. Defendants...Read More