The Ninth Circuit certified a question to the Nevada Supreme Court, asking whether the insurer can seek reimbursement of defense costs if it is determined the insurer has no duty to defend. Nautilus Ins. Co. v. Access Medical, LLC, 2019 U.S. App. LEXIS 19777 (9th Cir. July 2, 2019).      The insured, Access Medical, was sued by Ted Switzer due to alleged interference with relationships Switzer had with hospitals. For example, Access Medical…

    Noting that only an insurance company could suggest no coverage for an injury caused by a drunk driver, the Fifth Circuit rejected the insurer’s argument. Frederking v. Cincinnati Ins. Co., 2019 U.S. App. LEXIS 19796 (5th Cir. July 2, 2019).     Carlos Sanchez was driving under the influence of alcohol when he failed to yield the right of way, and collided with a car driving by Richard Frederking. Sanchez was driving a truck…

    No defense was owed to the additional insured despite the argument that the insurer’s denial was untimely. Houston Cas. Co. v. Cavan Corp. of NY, Inc., 2019 N.Y. Misc. LEXIS 3556 (N.Y. Sup. June 27, 2019).     Cavan Corporation entered a Construction Management Agreement (CMA), as the construction manager, with Puck Residential Association, LLC, as the owner. Cavan was to build six new residential condominium units in the Puck Building. Cavan secured…

    Applying Montana law, the federal district court found that the insurer owed a defense for faulty workmanship claims against the insured contractor. Atlantic Cas. Ins. Co. v. Quinn, 2019 U.S. Dist. LEXIS 103566 (D. Mont. June 20, 2019).     The Quinns contracted with Brunner Homes and Construction to build a custom home. The contract required Brunner to complete the home 300 days after work commenced. Otherwise, Brunner would be responsible for 0.5% of…

    The broker’s motion to dismiss the insured complaint for negligence based upon collateral estoppel was unsuccessful. Gjonaj Realty & Mgt. Corp. v. Capacity Group of NY LLC, 2019 N.Y. App. Div. LEXIS 4880 (N.Y. App. Div. June 18, 2019).      The insured was sued in a personal injury action. A default judgment was entered against the insured. On appeal, the court noted that the insured’s excuse that they relied upon their agent’s representations…

    Act 070, signed in to law by the governor on June 7, 2019, requires insurers to register any trade name with the Business Registration Division (BREG), Department of Commerce and Consumer Affairs (DCCA), prior to the use or change of a trade name to sell, solicit, or negotiate insurance in Hawaii. Upon registration of the trade name with BREG, the licensee may apply with the Insurance Division’s Licensing Branch to add or remove…

    The court determined that there was a duty to defend despite the insurer’s contention that no “occurrence”  or “bodily injury” had been alleged. Zurich Am. Ins. Co. v. Electricity Main, LLC, 2019 U.S. App LEXIS 18074 (1st Cir. June 17, 2019).     Electricity Maine, LLC had a D&O policy with Zurich. In November 2015, a class action was brought against Electricity Maine. Two customers sought to represent a class of nearly 200,000 of…