The court found there was no coverage for the property management company after a fraudster sent a false email with wiring instructions, causing a loss of $200,000. Ernst & Haas Mgmt. Co. v. Hiscox, Inc., 2020 U.S. Dist. LEXIS 218379 (C.D. Calif. Nov. 5, 2020).      Ernst & Haas (E&H) employee Krystale Allen, an accounts payable clerk, received an email from someone she thought was David Haas, a managing broker at E&H.…

    The court found the was a single occurrence when 124 separate cases of food poisoning were allegedly caused by one restaurant over a four-day period. Travelers Cas. Ins. Co. of Am. v. Mediterranean Grill & Kabob Inc., 2020 U.S. Dist. LEXIS 210212 (W.D. Texas Nov. 4, 2020).     Nearly 200 cases of food poisoning from salmonella bacteria were reported to city officials after all patrons ate at Pasha Mediterranean Grill. Pasha was…

    The court granted in part, denied in part, the insurer’s motion to dismiss after examining portions of the policy’s virus exclusion. Barbershop v. Twin City Fire Ins. Co., 2020 U.S. Dist. LEXIS 211152 (W.D. Texas, Nov. 4, 2020).     The insured was a barbershop and grooming supply retailer. On March 31, 2020, government orders temporarily closed the insured’s business until May 5, 2020, due to COVID-19. The insured submitted a claim for…

    The court approved the magistrate’s decision granting a motion to amend the complaint against the broker for negligent misrepresentation and negligent misrepresentation. Ashford Locke Builders v. GM Contrs. Plus Corp., 2020 U.S. Dist. LEXIS 196646 (E.D. N. Y. Oct. 22, 2020).      The broker challenged the amended complaint, arguing that plaintiffs had not stated a cause of action for negligent or fraudulent misrepresentation because the broker did not make any misrepresentations to…

    The federal district court in Virginia denied the insurer’s motion to dismiss the insured’s claim for losses due to COVID-19. Elegant Massage, LLC v. State Farm Mut. Auto. Ins. Co., 2020 U.S. Dist. LEXIS 231935 (E.D. Va. Dec. 9, 2020).     Elegant Massage owned and operated its business providing therapeutic massages. Due to local and state orders that limited occupancy to 50% and required six feet between workstations for spas, Elegant voluntarily…

    The Mississippi Supreme Court held that the insurer must produce written communications from and make available for deposition the in-house counsel who orchestrated the denial of coverage. Travelers Pro. Cas. Co. of Am. v. 100 Renaissance, LLC, 2020 Miss. LEXIS 409 (Miss. Oct. 29, 2020).      An unidentified driver struck a flagpole owned by the insured Renaissance, causing $2,134 in damages. Renaissance filed a claim with Travelers for uninsured-motorist coverage. The Travelers’ claims…

    Damage to a building caused by the break of a water pipe was not a collapse under the policy. Naabani Twin Stars v. Travelers Cos., 2020 U.S. Dist. LEXIS 196443 (D. N. M. Oct. 22, 2020).     An underground water line ruptured on plaintiffs property This caused a collapse under the adjacent parking lot, which in turn caused land beneath the building go change positions and damage the building. A geotechnical consultant…