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TODAY'S TOP DEVELOPMENTS Tuesday, July 15, 2014

Industry news, expert analysis, and daily updates on the most significant insurance coverage legal developments—from the insurance and legal experts of The National Underwriter Company.

Commercial General Liability
Washington Supreme: Adjudication of Duty to Defend Cannot be Delayed by Discovery
The Washington Supreme Court has ruled that that an adjudication of the duty to defend cannot be delayed by discovery. Thus, the court found, the trial court in this case had erred by delaying adjudication of the insured's summary judgment motion concerning the duty to defend until the insured complied with "potentially prejudicial discovery" in the underlying actions against it. Moreover, the Washington Supreme Court held, all discovery logically related to the underlying claims would have to be stayed until such claims were fully adjudicated. Read More

Commercial Property
Superstorm Sandy in the Eastern District of New York: The Impact of Case Management Order No. 1
In a Superstorm Sandy case, a federal district judge in the Eastern District of New York has dismissed bad faith, punitive damages, and unjust enrichment claims brought by a policyholder against its insurance carrier, as provided by a case management order entered in the hundreds of Sandy cases pending in the district. The ruling highlights the overwhelming difficulties that policyholders will face when seeking to bring these kinds of claims in Sandy cases. Read More

Despite Pollution Exclusion, Insurer Must Defend Insured in Case Alleging Worker Entered Mud Tank that Contained Caustic Materials and Was Injured
A federal district court in Texas has ruled that an insurance carrier must defend its insured in an action by a worker who alleged that he had been injured after he entered a mud tank to clean it and was exposed to caustic materials. The court rejected the insurer's contentions that the pollution exclusion barred coverage because the caustic materials must have been "dispersed" in the tank. Read More

PCOH Exception to Policies' Pollution Exclusion Was Intended to Cover Offsite Contractor Work, Court Rules
A federal district court in Indiana has ruled that the "products-completed operations" exception to the pollution exclusion clause in insurance policies issued to the insured was intended to cover offsite contractor work, and not to the offsite impacts of a pollutant released from the insured's facility as a result of the insured's "work." Read More

View All Case Law Developments

Automobile Insurance
New York Trial Court Issues TRO Preventing Lyft from Operating in New York City
A trial court in New York City has issued a temporary restraining order against the scheduled New York City launch of the ridesharing service Lyft. Read More

Health Insurance
2 Senators Seek Information on New Hepatitis C Drug Given Implications for Federal Health Insurance Programs
Senate Finance Committee Chairman Ron Wyden (D-Ore.) and senior committee member Chuck Grassley (R-Iowa) have requested detailed pricing information on a new Hepatitis C virus ("HCV") drug, given what they said were the implications of its cost on federal insurance programs. Read More

View All Legislative/Regulatory Developments
Economic and Financial Macroeconomic Disruptions Will Have Highest Impact on Society, Says AXA's 2014 Emerging Risks Acumen Read More

ACE to Acquire Corporate P&C Insurance Business of Itau´ Seguros in Brazil Read More

Greg Mosher, David Harris, and Lowery Robinson Launch New Specialty Insurance Group Read More

Nick Ambriano Appointed Head of Aon Benfield's U.S. Casualty Facultative Team Read More

Paul Evans to be Next Chairman of the ABI Read More

View All Industry News
Q & A
Named Insured on Builders Risk Policy Entitled to Total Value of Loss

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60px_newMeyerowitz Steven A. Meyerowitz, ESQ.
Director, FC&S Legal
[email protected]
60px_newSpears Victoria Prussen Spears, ESQ.
Associate Director, FC&S Legal
[email protected]
FC&S Legal Editorial Advisory Board
Mitchell J. Auslander, Willkie Farr & Gallagher LLP
Carrie Cope, Schuyler, Roche & Crisham, P.C.
Anjali C. Das, Wilson Elser
John F. Finnegan, Chadbourne & Parke LLP
Michele L. Jacobson, Stroock & Stroock & Lavan LLP
Timothy P. Law, Reed Smith LLP
Donald S. Malecki, Malecki, Deimling, Nielander &
Associates, LLC
Cort T. Malone, Anderson Kill & Olick, P.C.
D. Milone, Kelley Drye & Warren LLP
Joseph P. Monteleone, Rivkin Radler LLP
Anne M. Murray, Rivkin Radler LLP
Jerold Oshinsky, Kasowitz, Benson, Torres &
Friedman LLP
Seth B. Schafler, Proskauer Rose LLP
David D. Thamann, The National Underwriter Company

FC&S Daily Legal Report ($1,295 annual subscription) is included as part of your subscription to FC&S Legal: The Insurance Information Center. FC&S Daily Legal Report and The Insurance Coverage Law Report are publications of The National Underwriter Company. For more information, visit To subscribe to FC&S Legal, please contact customer service at 1-800-543-0874 or [email protected].
FC&S Legal: The Insurance Coverage Law Information Center
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