Directors & Officers
No Coverage for Claim Seeking Right to Use Beach Property Rather than Compensation, Appeals Court Says
A Wisconsin appellate court has affirmed a trial court’s decision in favor of an insurer, finding no coverage for claims against its insured, a beach club condominium association, because the claims against the association did not seek “damages” but only the right to continue to use certain beach property. Read More

Automobile Insurance
In “Car on Bed” Case, Appeals Court Rejects Insurer’s Reliance on Release Previously Signed by Insured
An intermediate appellate court in New York has affirmed a trial court’s decision denying an insurer’s motion to dismiss a suit by its insured, finding that a release that the insured had signed upon receiving benefits from the insurer did not definitively bar the insured’s subsequent action. Read More

Automobile Insurance
Montana Supreme Court Upholds Order Requiring Insureds’ Attorney to Pay Insurer’s Attorney’s Fees, and a Fine
The Montana Supreme Court has affirmed a trial court’s decision requiring an attorney for insureds who sued their automobile insurer to pay the insurer’s attorney’s fees ($35,840.92) and an additional fine ($32,908.75) ruling that the trial court had not abused its discretion. The court concluded that the attorney’s argument that lesser sanctions had been imposed in other cases was “unavailing” because Rule 11 sanctions “must be based upon its own facts and circumstances.” Read More

Exclusions
No Coverage for Building Damage Where Insured Failed to Demonstrate that Water Leak, Rather than Severe Rainstorm, Was the Cause
The U.S. Court of Appeals for the First Circuit has rejected an insured’s appeal, finding that it had not demonstrated that a water leak from a cracked pipe – rather than a severe rainstorm – was the efficient proximate cause of damage to the insured’s building.  Read More