East Coast CM Report of Recent Decisions – 2019 Volume 1

April 18, 2019 / CM Reports

Coverage For Contaminated Milk? Arguments On Appeal Are Spoiled When Not Raised At Trial

In a contested coverage and contribution lawsuit brought by an insured’s general liability (“GL”) carrier against the insured’s auto liability carrier, the United States Court of Appeals for the Second Circuit, in the case of Harleysville Worcester Ins. Co. v. Wesco Ins. Co., 2019 U.S. App. LEXIS 3349, 2019 WL 413655 (2d Cir. Feb. 1, 2019), heard arguments as to whether the GL carrier was entitled to contribution from the insured’s auto carrier arising from the GL carrier’s sole defense and indemnification of their insured related to a third-party’s claim for damages resulting from contaminated milk.

Georgia High Court Clarifies The Standard For Bad Faith Failure To Settle Within Policy Limits

On March 11, 2019, the Georgia Supreme Court handed down a unanimous decision clarifying that an insurer may not be sued for bad faith failure-to-settle within policy limits absent a valid offer.

Automobile Insurer Does Not Have An Affirmative Duty To Investigate A Potential Insured’s Personal Health Insurance Coverage

In Lledon James et al. v. State Farm Insurance Company, No. A-5174- 16TC (Jan. 18, 2019), the New Jersey Appellate Division was asked to determine whether an automobile insurance provider has a legal obligation to investigate an insured’s personal health insurance.

NJ Appellate Court Finds Unlicensed Drivers Are Not Entitled To PIP Benefits Despite Permission By Vehicle Owner

A New Jersey Appellate Court found that unlicensed drivers are not entitled to personal injury protection (“PIP”) benefits for injuries resulting from a car crash even if given permission to drive by the car’s owner, thereby affirming the Law Division’s dismissal of plaintiff Norma Blanco-Sanchez’s Complaint. Norma Blanco-Sanchez v. Personal Service Insurance Company, Docket No. A-5393-16T4, Superior Court of New Jersey Appellate Division (February 28, 2019).

Rodriguez v. City Of New York, Exploring The Impact The Court Of Appeals’ Decision Had On Litigation, One Year Later

In Rodriguez v. City of New York, 31 N.Y.3d 312 (April 3, 2018) the Court of Appeals discussed what a plaintiff needs to show in order to prevail on a motion for partial summary judgment.

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