» Insurance
Subrogation suit dismissed based on contractual limitations period in arbitration clause
November 22nd, 2011
In Vigilant Insurance Company v. American Mechanical Services of Maryland, LLC, the U.S. District Court for the District of Columbia dismissed a subrogation action by an insurance company against a contractor on the grounds that the claim was barred by a contractual limitations period. Vigilant sued American Mechanical Serv…
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Innocent Insureds provision held not to save coverage for accounting firm for employee theft
September 12th, 2011
In Bryan Brothers Inc. v. Continental Casualty Co., No. 10-1439 (4th Cir. March 24, 2011)(published per order filed Sept. 6, 2011), the Court held that the prior knowledge provision in an accounting firm’s professional liability policy was a clear and unambiguous condition precedent to recovery under the policy for th…
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Maryland federal court denies coverage under CGL policy for alleged theft of $1.5 million in goods
September 5th, 2011
In IFCO Systems North America, Inc. v. American Home Assurance Company, No. 09-2874 (D. Md. June 23, 2011), the Court granted summary judgment to American Home Assurance Company, finding no coverage under the American Home policy for the insured’s liability arising from alleged theft by the insured’s employees o…
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Rescission action requires reasonable promptness by insurer
September 4th, 2011
In The Charter Oak Fire Ins. Co. v. American Capital, Ltd., No. DKC 09-0100 (Aug. 9, 2011), the Court considered the issue of whether an insurer acted with reasonable promptness to rescind an insurance policy after learning of misrepresentations in the application for insurance. The district court denied the insured’s…
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Legal malpractice insurer breached duty to defend, affirms 4th Circuit
September 1st, 2011
In Minnesota Lawyers Mutual Insurance Co. v. Batzli, Nos. 10-1684, 10-1839, 10-1910 (4th Cir. Aug. 4, 2011)(unpublished), the 4th Circuit affirmed the trial court’s denial of a post-trial motion for judgment as a matter of law, made by the insurer, that challenged the jury’s verdict that the insurer breached its…
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The Insurer's Duty to Defend in the District of Columbia
June 30th, 2011
Contributor: David B. Stratton
In Stevens v. United General Title Insurance Co. , 801 A.2d 61 (D.C. 2002), the Court reaffirmed the District of Columbia’s adherence to the “eight corners rule,” requiring a comparison of the complaint with the insurance policy to determine the existence of a duty to defend. “Under [the ‘eight…
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Reminder Notice Can Extend Grace Period for Life Insurance Premium Payment in Maryland
June 27th, 2011
In a decision of interest to estate attorneys and insurance advisors, the Maryland Court of Special Appeals considered whether a life insurance policy issued to Dr. John Griffith (“Dr. Griffith”) was in force at the time of his death. See United States Life Ins. Co. v. Wilson, 198 Md. App. 452, 18 A.3d 110 (2011…
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Coverage Issues in Review: E.D. of Virginia Tackles Pollution Exclusion in Chinese Drywall case
June 26th, 2011
Most liability insurance policies include what is commonly referred to as a “pollution exclusion” provision, which essentially excludes insurance coverage for bodily injury or property damage arising out of the discharge of “pollutants.” The inception of the pollution exclusion provision in liability…
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Judicial interpretation of "business enterprise" exclusions in lawyers professional liability policies
February 12th, 2011
Contributor: David B. Stratton
It is well-settled that courts will enforce “business enterprise” exclusions, sometimes also called “business pursuit” exclusions, in lawyers professional liability policies. The general approach taken has been to apply the plain meaning of the terms of the exclusions, with reference both to the reas…
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In Virginia, An Error of Judgment, or Even Negligence, Does Not Show Bad Faith By Insurer
April 9th, 2009
In Goldstein v. National Casualty Company, 2008 U.S. Dist. Lexis 58129 (W.D. Va. July 28, 2008), Judge Kiser granted the insurer’s motion for summary judgment on an insurance bad faith claim. The claim arose from an excess judgment. The insured was a truck driver who was involved in an accident as he was attempting to…
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