CM Report of Recent Decisions – 2017 Vol. 1

May 3, 2017 / CM Reports

CMReportVol12017_CoverArticles 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.

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  • Chicago

    Illinois 60603

    10 South LaSalle Street

    Chicago, Illinois 60603

    T: 312.855.1010 TF: 800.826.3505 F: 312.606.7777 Office Managing Partner: Dennis D. Fitzpatrick

  • New York

    New York 10005

    28 Liberty Street 39th Floor

    New York, New York 10005

    T: 212.805.3900 TF: 800.826.3505 F: 212.805.3939 Office Managing Partner: Tyler Jay Lory

  • Irvine

    California 92614

    17901 Von Karman Avenue

    Suite 650

    Irvine, California 92614

    T: 949.260.3100 TF: 800.826.3505 F: 949.260.3190 Office Managing Partner: Ian R. Feldman

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    New Jersey 07932

    100 Campus Drive

    Florham Park, New Jersey 07932

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    Indiana 46360

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    Michigan City, Indiana 46360

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    Wisconsin 54914

    4650 W. Spencer Street

    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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    Florida 32801

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