August 30, 2013
Westlaw Topical Highlights for Insurance provides summaries of significant federal and state judicial decisions and legislative and administrative activities affecting Insurance law. A Westlaw subscription is required to access the documents linked from this page.
Marine: Broker was not subject to negligence liability for not advising owner to insure yacht for its full value. Brandwein v. Butler 2013 WL 4501305 (Cal.App. 4 Dist.) Under federal maritime law and California law, a marine property insurance broker was not subject to negligence liability for its alleged failure to properly advise a yacht owner to insure the yacht for its full market value or to inquire as to any increase in the yacht’s value beyond its purchase price. The doctrine of uberrimae fidei imposed a duty of disclosure on the owner, and the owner failed to fully disclose the facts about the value of the yacht’s upgrades and its alleged true value. The consequences of the insured’s failure to make material disclosures could not be passed off to another, including the insurance broker or even the marine insurer itself. (The full-text of the rest of the Topical Highlights are available within Westlaw Next, subscription required).
Automobile: Child custody order regarding child’s domicile was conclusive for purposes of child’s domicile under No-Fault Act. Grange Ins. Co. of Michigan v. Lawrence 2013 WL 3884233 (Mich.)
Evidence: Appropriate sanction for homeowner insurer’s spoliation of evidence was striking of related evidence and expert opinions. Allstate Texas Lloyd’s v. McKinney 2013 WL 3873256 (S.D.Tex.)
Arbitration and Appraisal: McCarran–Ferguson Act did not apply to prevent FAA from requiring court to submit arbitrability dispute to arbitral panel. In re Arbitration Between Nat. Union Fire Ins. Co. of Pittsburgh, P.A. v. Personnel Plus, Inc. 2013 WL 3787496 (S.D.N.Y.)
Liability: Liability insurance policies were premises liability, not comprehensive general liability, policies. Nationwide Mut. Fire Ins. Co. v. Wilbon 2013 WL 4401810 (D.D.C.)
Excess and Umbrella: Prior publication exclusion in umbrella policy did not preclude coverage for copyright infringement claims. Lexington Ins. Co. v. MGA Entertainment, Inc. 2013 WL 3479415 (S.D.N.Y.)
Life: Mutual life insurance company did not breach fiduciary duty by allocating voting rights to life-insured and not policy owners. Keros v. Massachusetts Mut. Life Ins. Co. 2013 WL 4003601 (D.Mass.)
Liability: Professional liability policy’s exclusion for misappropriation of funds under insured’s control barred coverage for insured. Attorneys Liability Protection Society, Inc. v. Whittington Law Associates, PLLC 2013 WL 3289055 (D.N.H.)
Damages: Insurance recoveries corresponded completely to potential tort recoveries, and thus offset tort recoveries as collateral source payments. In re September 11 Litigation 2013 WL 3948342 (S.D.N.Y.)