CM Report of Recent Decisions – 2020 Volume 3

October 20, 2020 / CM Reports

Seventh Circuit Certifies Illinois Contribution Act Issue To Illinois Supreme Court: Preserve Your Record

On August 5, 2020, the Seventh Circuit issued its decision in Roberts v. Alexandria Transp., 968 F.3d 794 (7th Cir. 2020), certifying to the Illinois Supreme Court a previously unanswered question arising under the Illinois Contribution Act.

No “Direct Physical Loss Or Damage” Where Property Merely Needs To Be Cleaned

With implications for COVID-19 loss of rent and business interruption claims, the Eleventh Circuit has held that an item or structure that merely needs to be cleaned has not suffered a loss that is both “direct” and “physical.”

Florida’s Cast Iron Pipes Problem: “Tear Out and Replacement”

The use of cast iron for residential plumbing system pipes was common in Florida until about 1980, when PVC pipes became prevalent. Cast iron pipes tend to fail faster in Florida, likely due to humidity and salt content in soil.

Florida Bad Faith Action Against Insurer Permitted Notwithstanding Timely Payment Of Appraisal Award

In a recent decision by Florida’s Second District Court of Appeal, the court held that a Civil Remedy Notice of Insurer Violations (“CRN”) filed after the invocation of appraisal was sufficient to satisfy the requirements for bringing a statutory bad faith action against an insurer, even when there had been timely payment of the appraisal award.

In Recent Rulings, State And Federal Courts Find No Coverage On Covid-19 Business Interruption Claims, Citing Lack Of Direct Physical Loss And Virus Exclusion

In three recent decisions, courts sitting in different jurisdictions concluded that policyholders’ claims for business interruption coverage arising out of COVID-19 were precluded. In these cases, governmental entities had issued executive orders limiting or eliminating the operation of the involved businesses in light of the COVID-19 pandemic.

Florida Supreme Court To Decide Whether Insured May Recover Consequential Damages Against Property Insurer In Non-Bad Faith Case

On September 8, 2020, the Florida Supreme Court heard arguments on review of the Florida Fifth District Court of Appeal’s decision in Manor House, LLC v. Citizens Prop. Ins. Corp., 277 So. 3d 658 (Fla. 5th DCA 2019).

Federal Trial Court In Florida Enforces AOB Exclusion In Surplus Lines Policy

On September 25, 2020, a federal trial court in Florida held that, unlike admitted insurance carriers in Florida, surplus lines carriers are free to preclude assignment of benefits (“AOBs”) via policy exclusions, which this court held are enforceable.

California Appellate Court Limits Vicarious Liability By Addressing Exceptions To The “Going-And-Coming” Rule

In Savaikie v. Kaiser Foundation Hospitals, 52 Cal.App.5th 223, Cali fornia’s Second Appel late District further analyzes the “goingand- coming” rule, concerning an employer’s potential vicarious liability for an employee’s negligence during travel to or from work.

California Appellate Courts Split On Reimbursement Of Defense Costs Under Equitable Subrogation Theory

We previously discussed Pulte Home Corporation v. CBR Electric, Inc., et al. (2020) 50 Cal.App.5th 216, wherein California’s Fourth Appellate District held that an insurer who provided an additional insured defense to a general contractor may pursue reimbursement of defense costs under an equitable subrogation theory against subcontractors who were also obligated to defend the general contractor in suits involving allegations related to the subcontractors’ work.

  • Chicago

    Illinois 60603

    10 South LaSalle Street

    Chicago, Illinois 60603

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    New York 10005

    28 Liberty Street 39th Floor

    New York, New York 10005

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    California 92691

    27285 Las Ramblas

    Suite 200

    Mission Viejo, California 92691

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    New Jersey 07932

    100 Campus Drive

    Florham Park, New Jersey 07932

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    Indiana 46360

    200 Commerce Square

    Michigan City, Indiana 46360

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    Wisconsin 54914

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    Appleton, Wisconsin 54914

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    Connecticut 06902

    68 Southfield Avenue

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    Stamford, Connecticut 06902

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    Florida 33609

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    Suite 600

    Tampa, Florida 33609

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    California 94111

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    San Francisco, California 94111

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