In a recently published opinion, the Superior Court of New Jersey Appellate Division answered a question of first impression: whether the New Jersey Transportation Network Company Safety and Regulatory Act (the “Act”), which requires “transportation network companies” to provide at least $1.5 million in underinsured motorist insurance coverage, applies to food delivery services such as Uber Eats.
Continue Reading No Coverage for Late Night Snacks: New Jersey Court Finds Uber Eats is Not Covered by State’s Insurance Coverage Requirements for Ride-Hailing Companies

Despite the seemingly calm tropics, hurricane season is still going strong and will be for another two months. Is your business prepared in the event a hurricane hits? Andrea DeField and Alice Weeks recently published an article in Risk Management Magazine which is full of tips to minimize losses and maximize recovery in the event

Hunton Andrews Kurth LLP recently wrote about the Eleventh Circuit decision in McNamara v. Gov’t Employees Ins. Co., 30 F.4th 1055 (11th Cir. 2022) (“McNamara”), where the court held that a consensual settlement (such as a consent judgment) serves as an excess judgment for the purposes of a bad faith claim.  In a follow up decision, the Eleventh Circuit extended its McNamara reasoning to a case involving an accepted proposal for settlement.  In Potter v. Progressive American Insurance Company, No. 21-11134 (11th Cir. 2022), Daniel Lee and Jolene Potter brought a third-party bad faith action against the insurer, Progressive.  The Potters were involved in an automobile accident with Progressive’s insured, under an automotive liability policy with bodily injury limits of $10,000 per person.  The Potters sued Progressive’s insured and ultimately served a proposal for settlement, pursuant to Fla. Stat. § 768.79, totaling $125,000.  The insured accepted the proposal, a final judgment was entered, and the Potters sued Progressive for bad faith.
Continue Reading Judgment (Still) Means Judgment: The Eleventh Circuit Extends McNamara to a Proposal for Settlement

Texas is among the minority of states that permit few, if any, deviations from the “eight-corners rule,” which provides that an insurer’s duty to defend must be determined from the complaint and the policy, without regard to extrinsic evidence or facts. In Bitco Gen. Ins. Corp. v. Monroe Guar. Ins. Co., No. 19-51012, 2022 WL 1090800 (5th Cir. Apr. 12, 2022) (“Bitco”), the Fifth Circuit Court of Appeals declined to consider extrinsic evidence in determining Bitco’s duty to defend and outlined when a court applying Texas law can deviate from the state’s strict eight-corners rule under the Monroe exception.
Continue Reading Texas Duty to Defend: To Deviate or Not to Deviate

In a recently published opinion, the Eleventh Circuit revisited – and departed from – its prior, unpublished decision in Cawthorn v. Auto-Owners Insurance Co., 791 F. App’x 60 (11th Cir. 2019). The Court held that a final judgment that exceeds all available liability policy limits, whether such judgment results from a jury verdict or a consensual settlement, constitutes an “excess judgment” that can be used to satisfy the causation requirement of an insurer bad faith claim in Florida.
Continue Reading Judgment Means Judgment: The Eleventh Circuit Reestablishes that a Consensual Excess Settlement Can be Used to Satisfy Causation Prong of Bad Faith

In an appeal to the Ninth Circuit, a private equity firm has asked the court to reverse an order finding there was no coverage for a suit alleging it concealed that a facility it sold was run by Joaquín “El Chapo” Guzmán. AKN Holdings had purchased a manufacturing facility in Reynosa, Mexico, from Thermo Fisher, unaware that the facility “was overrun” by the drug cartel of “El Chapo.” After discovering the concealment, AKN Holdings sued Thermo Fisher and, while that suit was pending, in turn sold the facility to FINSA, also without disclosing the cartel activities or its pending lawsuit.
Continue Reading Prison Break: Insurer Seeks to Escape Coverage for Suit Tied to “El Chapo”