CM Report of Recent Decisions – 2017 Vol. 1
Articles in this report
Sidebar: Ninth Circuit Creates Bad Law For Excess Insurers—At Least In California
On March 21, 2017, the United States Court of Appeals for the Ninth Circuit issued its decision in Teleflex Medical
Inc. v. National Union Fire Ins. Co. of Pittsburgh, Pa., 851 F.3d 976 (9th Cir. 3/21/17), holding that under existing California law, an excess insurance carrier has certain duties where a proposed settlement demand exceeds a defending primary insurer’s limits and has been approved by the insured and the primary insurer.
“Phony Line” Leads To FMLA Liability
The Seventh Circuit affirms a jury verdict for plaintiff against an employer accused of retaliation under the FMLA
in Tracy L. Wink v. Miller Compressing Co., Nos. 16-2336, 16-2339 cons., ___F.3d ___ (7th Cir. 2017).
Sixth Circuit Enforces Professional Liability Exclusions
General liability insurers did not have a duty to defend insured engineering and architecture firm in underlying action alleging that insured was negligent in its duty to supervise construction operations, provide adequate safety supervision, and include in its project plans ways to ensure the safe removal of digester lids, because such allegations fell within the policies’ professional services exclusions.
No Defense Duty For Allegations That Merely “Relate” To Potential Coverage
An insurer’s duty to defend typically turns on the allegations of the underlying complaint against the insured. Sometimes those allegations contain statements that arguably could give rise to a defense obligation, but the statements are not the basis for the underlying claimant’s cause of action.