HNRK Coverage Corner

On October 22, 2020, Judge Román of the SDNY issued a decision in U.S. Specialty Ins. Co. v. Village of Chester, Case No. 19-cv-467(NSR), staying an insurer’s declaratory judgment action pending the resolution of a parallel state court action that would determine the factual issues underlying the coverage dispute.

The Village of Chester sought liability coverage for a lawsuit by a developer who alleged that the City had improperly interfered with the planned construction of a multifamily residential development.  At issue in the underlying litigation was the enforceability of ...

On August 20, 2020, the Fourth Department issued a decision in Scalzo v. Central Co-op. Ins. Co., 2020 NY Slip Op 04639, holding that an intentional assault was excluded from coverage under a liability policy, despite conclusory language in the complaint asserting a negligence claim in the alternative.

The plaintiff in the underlying personal injury lawsuit asserted two causes of action:  the first alleged that the insured (Scalzo) assaulted the plaintiff “by seizing him, striking him and punching him in the face” and that those actions were “willful, intentional ...

On October 7, 2020, North Carolina Superior Court Judge Orlando F. Hudson, Jr. handed down an important victory for policyholders seeking business interruption insurance for losses arising from closures relating to the COVID-19 pandemic.  In North State Deli, LLC v. The Cincinnati Ins. Co., Case No. 20-CVS-02569, Judge Hudson granted summary judgment to a group of restaurants, ruling that state shutdown orders constitute a covered “direct physical loss” under the applicable property insurance policies.

As discussed in my article, “A Guide to Insurance Coverage for ...

On September 16, 2020, Judge Failla of the SDNY issued a decision in Philadelphia Indemnity Ins. Co. v. Streb, Inc., Case No. 19-CV-366 (KFP), ruling that a CGL carrier had no duty to defend a personal injury action because undisputed “extrinsic evidence” (i.e., facts not alleged in the complaint) conclusively established that an exclusion applied.

The insured (Streb, Inc.), a not-for-profit dance and performance company, was a defendant in a personal injury action brought by a participant in an aerobics class who was severely injured on a trampoline.  Streb’s CGL policy ...

On August 12, 2020, United States District Judge Stephen Bough of the Western District of Missouri issued an important decision for policyholders seeking business interruption insurance for losses arising from closures relating to the COVID-19 pandemic. 

In Studio 417, Inc. v. Cincinnati Ins. Co., Case No. 20-cv-03127-SRB (W.D. Mo.), Judge Bough ruled that the plaintiffs insureds, who operate hair salons and restaurants subject to government-mandated closures, adequately alleged a claim for business interruption insurance coverage. The insureds submitted claims for ...