Jordan Plitt News

Does a Water Backup Exclusion Include Sewage?

Standard property policies typically contain an exclusion which provides that the insurer “will not pay for loss or damage caused directly or indirectly by . . . water that backs up or overflows from a sewer, drain, or sump.” A …

Montana Courts Finds That Falling Boulders Constitute ‘Earth Movement’ for Purposes of Policy Exclusion

The Montana Supreme Court in Parker v. Safeco Ins. Co. of America, 384 Mont. 125, 2016 MT 173, 376 P.3d 114 (2016), held that an earth movement exclusion was not limited solely to damages caused by soil movement. The Court …

Liquidated Judgment Not Necessary for Equitable Subrogation

California’s Ninth Circuit Court of Appeals finds that the absence of a litigated judgment did not preclude an equitable subrogation claim from being brought by an excess insurer for bad faith failure to settle when the excess insurer actually contributed …

Set-up on Failure to Defend Rejected in Florida

In a surprising decision, a Federal District Court, applying Florida law, granted summary judgment to an insurance company on a “failure to settle” claim because the insured’s liability was not clear. Florida is a testing ground for creative lawyering designed …

Failure to Re-Evaluate is Bad Faith

In a self-evident decision, the Eighth Circuit Court of Appeals recently held that an insurance company’s failure to re-evaluate a case value after the trial court eliminated a key affirmative defense justified a bad faith failure to settle verdict. The …

Pro Rata Allocation Comes to Louisiana

In Daniel Arceneaux, et al. v. Amstar Corp., et al., 2015-0588 (La. 9/7/16), 2016 WL 4699163 (La. 9/7/16), the Louisiana Supreme Court held that in long latency disease cases the cost of the duty to defend should be prorated between …