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Headline Insurance Legal News from LexisNexis®

• Pollution Exclusion Not Applicable To Indoor Oil Spill, Judge Says
  PHILADELPHIA - A Pennsylvania judge ruled Sept. 30 that the pollution exclusion does not apply to a claim resulting from a home heating oil spill during delivery absent environmenatal impact (Cleveland Whitmore and Louise Whitmore v. Liberty Mutual Fire Insurance Co., No. 07-5162, E.D. Pa.; 2008 U.S. Dist. LEXIS 76049). Full story on lexis.com
• Illinois Judge Rules Defense Owed In Connection With Defective Product
  CHICAGO - A liability insurer owes a defense with respect to a lawsuit arising from the incorporation of an insured's defective product into a customer's larger product where other property was damaged and exclusions are not applicable, an Illinois judge ruled Aug. 27 (Fireman's Fund Insurance Co. v. Amstek Metal LLC and P.J. Wallbank Springs Inc., No. 07 C 647, N.D. Ill; 2008 U.S. Dist. LEXIS 75879). Full story on lexis.com
• 5th Circuit Rules On Excess Policy's Payment Requirements As To Asbestos Coverage
  NEW ORLEANS - The Fifth Circuit U.S. Court of Appeals ruled Oct. 1 that the terms of an excess policy under which an insured sought asbestos claims coverage require reimbursement of payments, not payment of claims up front (TIG Insurance Co., et al. v. Eagle Inc., et al., No. 07-30740, 5th Cir.; 2008 U.S. App. LEXIS 20958). Full story on lexis.com
• Judge Requires Information About Vendors' Processes To Rule On Endorsement
  INDIANAPOLIS - An Indiana federal judge on Sept. 26 denied summary judgment regarding product liability coverage under a vendors endorsement where the record lacked sufficient information about the how vendors incorporate an insured's product into a larger item for sale (Dometic Corp. v. Liberty Mutual Insurance Co., No. 06-cv-1260, S.D. Ind.; 2008 U.S. Dist. LEXIS 74549). Full story on lexis.com
• Oregon Court Rules On Expected, Intended Environmental Damage
  PORTLAND, Ore. - An Oregon appeals panel ruled Oct. 1 that a lower court erred in placing the burden of proof and remanded for a new trial about whether an insured expected or intended environmental contamination (ZRZ Realty Co., et al. v. Beneficial Fire and Casualty Insurance Co., et al., No. A121145, Ore. App.; 2008 Ore. App. LEXIS 1337). Full story on lexis.com
• Business Risk Exclusions Not Applicable To Trespass Claim
  LIMA, Ohio - An Ohio appeals panel ruled Sept. 29 that business risk exclusions are not applicable to claims, including trespass, against a contractor that mistakenly cleared property adjacent to a work site (Beaverdam Contracting Inc. v. Erie Insurance Co., No. 1-08-17, Ohio App., 3rd Dist.; 2008 Ohio App. LEXIS 4136). Full story on lexis.com
• Federal Magistrate Judge Orders Production Of Files Relating To Deductibles
  INDIANAPOLIS - An Indiana federal magistrate judge on Sept. 23 granted a co-insurer's motion to compel production of another insurer's underwriting files and documents pertaining to aggregate deductible agreements with the insured (Irving Materials Inc. v. Zurich American Insurance Co., et al., No. 03-cv-361, S.D. Ind.; See 3/21/08, Page 5). Full story on lexis.com
• Panel Approves Sealing Of Underlying Settlement Files As To Pollution Liability
  HOUSTON - Addressing an environmental coverage dispute, a Texas appeals court on Aug. 28 ruled that files regarding settlements in an underlying environmental liability action should have been sealed to protect the insureds' interests (In re Browning-Ferris Industries Inc. and Asuza Land Reclamation Inc.; Browning-Ferris Industries Inc., et al. v. United States Fire Insurance Co. and TIG Insurance Co., No. 14-07-00899-CV, Texas App., 14th Dist.; 2008 Tex. App. LEXIS 7049; See 1/29/02, Page 6). Full story on lexis.com
• Judge Finds Tennessee Law Prohibits Exterior Insulation Class Action
  KNOXVILLE, Tenn. - A federal judge on Sept. 4 found that a homeowner seeking insurance coverage for allegedly defective exterior insulation that caused water damage to his home is prohibited from bringing a class action lawsuit under Tennessee law but can continue to pursue individual claims against his insurer (Ricky L. Chester v. State Farm Fire and Casualty Company, No. 3:06cv277, E.D. Tenn., Knoxville Div.; 2008 U.S. Dist. LEXIS 72990). Full story on lexis.com
• Insurer Seeks Declaration On Coverage For Defective Welds
  DENVER - A liability insurer is seeking a determination regarding coverage for defective welds installed on a Texas power plant (St. Paul Fire and Marine Insurance Co. v. Alstom Power Inc., et al., No. 08-2139, D. Colo.).