CM Report of Recent Decisions (2008v3)
2008 Volume 3
A summary of significant recent developments in the law focusing on substantive issues of litigation and featuring analysis and commentary on special points of interest.
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Articles in this report
"Catch-All" Language In Denial Letter Preserves Insurers's Defense In Pennsylvania State Court Action
A Pennsylvania state trial court judge held that an insurer in a first-party property coverage dispute did not waive the right to raise a policy exclusion as a defense to coverage when the insurer failed to identify the exclusion as a basis of its denial of coverage because the insurer’s denial letter contained “catch-all” language reserving the right to raise other defenses to coverage.
Litigious Employee Sues Same Employer Five Times
Here’s an employer’s nightmare: an employee sued her employer 5 times! More accurately; therefore, this is about 5 nightmares. Faulty reference check procedures caused the fourth and fifth nightmares. We have seven practice tips to chase the bad dreams away.
Recent California Supreme Court Ruling Impacts Duty To Defend Under An Indemnity Agreement
Indemnity provisions are used by parties to a contract to define their rights and obligations toward one another in the event of a third party lawsuit arising out of their contractual relationship. The terms of the indemnity provision may require one party to indemnify the other, under specific circumstances, for money paid or expenses incurred as a result of a third party lawsuit.
Texas Appellate Court Affirms Jury Verdict Award Of Mental Anguish Damages Against First-Party Insurer
In State Farm Lloyds v. Hamilton, 2008 WL 3984045 (Tex. App. Dallas), a Texas appellate court affirmed a jury verdict finding State Farm liable for breach of contract, cost of repair damages, extra-contractual violations, and mental anguish damages after State Farm denied the insureds’ claim for leaking and signs of structural distress at the insureds’ home.
Texas Supreme Court Adopts The "Actual Injury" Trigger For Construction Defect Claims
The Texas Supreme Court adopted the “actual injury” trigger of coverage to find that an insurer had a duty to defend under an occurrence-based commercial general liability policy because the claimant’s pleadings alleged that physical injury to tangible property took place during the policy period, and was caused by the insured’s allegedly defective product.
