The Massachusetts Supreme Judicial Court recently construed the undefined term “advertising idea” in a case of first impression in the Commonwealth, holding that a footwear company’s insurers must provide a defense against an underlying claim alleging unfair use of a former Olympian’s name to promote a line of running shoes.

Continue Reading Massachusetts High Court Says Use of Olympian’s Name Is Covered “Advertising Idea,” Not An Excluded IP Violation

North Dakota’s highest court delivered a blow to Mid-Continent Casualty Company in Borsheim Builders Supply, Inc. v. Manger Insurance Co., ruling that a contract between a policyholder and general contractor fit the insured contract exception of contractual liability.

Continue Reading North Dakota Supreme Court Clarifies Breadth of Contractual Liability Coverage

Hunton Andrews Kurth insurance practice head, Walter Andrews, recently commented to the Global Data Review regarding the infirmities underlying an Orlando, Florida federal district court’s ruling that an insurer does not have to defend its insured for damage caused by a third-party data breach.

Continue Reading Hunton Insurance Head Comments On Hotel Data Breach Coverage Dispute

Hunton Andrews Kurth insurance recovery associate, Andrea (Andi) DeField, was recently named among the 40 outstanding lawyers under the age of 40 in South Florida.  Andi has wasted no time using her status to help raise awareness and money for cystic fibrosis research.

On September 27, Andi attended the Cystic Fibrosis Foundation 40 Under 40 kickoff, an event held annually for the past 10 years to honor the best and brightest lawyers in the South Florida community while raising much-needed funds to support the Foundation’s mission.  The awards gala will be held on November 10, 2018. Andi is now part of a dedicated committee comprised of present and former honorees and other leaders in the legal industry.  Together, Andi and her colleagues hope to raise the funds necessary to someday eradicate cystic fibrosis.

Andi’s fundraising website can be found here.  Please consider helping Andi support this very worthwhile cause.

In a victory for policyholders, a New York trial court rejected insurers’ summary judgment arguments, ruling that an insurer must establish a common “fact, circumstance, situation, transaction or event” underlying an investigation before it can rely on a prior and pending litigation and investigation (“PPLI”) exclusion based on that earlier investigation. The court further ruled that the insurer cannot base its coverage denial on a common “fact, circumstance, situation, transaction or event” learned during the investigation.

Continue Reading New York Court Rejects Insurers’ Use of Prior/Pending Investigation Exclusion; Requires Factual Predicate to Exist Before the Prior Investigation and not Arise From It

Hurricane Florence has yet to make landfall, but the storm has already wreaked havoc on this weekend’s college football schedule, concerts, and other events. West Virginia and NC State postponed their Saturday game indefinitely.  Rescheduling remains to be seen.  UCF and North Carolina cancelled their game outright, as did East Carolina and Virginia Tech.  Other teams relocated their games or changed dates and start times, with many offering free tickets to fans who can accommodate the last-minute changes.  The NFL also is keeping a close eye on the situation, as the storm could impact Sunday’s game between the Washington Redskins and the Indianapolis Colts at FedEx Field.  Meanwhile, non-sporting events also have been cancelled, including Alan Jackson’s concert at the North Charleston Coliseum, the Zac Brown Band’s concerts in Charlotte and Raleigh, and J. Cole’s Dreamville Festival, which alone will require the refunding of some 30,000 tickets.

Continue Reading Uncertainty About Hurricane Florence’s Impact Zone Has Caused Widespread Event Cancellations. Insurance May Cover The Financial Loss

The Sixth Circuit recently upheld dismissal of KVG Properties, Inc.’s claims under a first-party property policy arising from damage to KVG’s office spaces due to tenants’ use of cannabis growing operations. We have been tracking the KVG case closely and previously reported on KVG’s initial appeal and Westfield’s retort on why the district court correctly dismissed the claims. Although there was no coverage for KVG under the particular facts of this case, the Sixth Circuit’s decision raises several important insurance issues for policyholders to consider and previews likely battlegrounds for future cannabis coverage disputes, many of which are precipitated by the variances in federal and state cannabis law.

Continue Reading Sixth Circuit Holds “Litany of Exclusions,” Illegal Cannabis Operations, Dooms Property Coverage Claim

In a victory for policyholders, and an honorable mention for Merriam-Webster’s Dictionary, a federal judge in Virginia ruled that the dispersal of concrete dust that damaged inventory stored in an aircraft part distributor’s warehouse was a pollutant, as defined by the policy, but that it also constituted “smoke” as that term was defined in the dictionary, thereby implicating an exception to the policy’s pollution exclusion.  The Court then granted summary judgment for the policyholder, who had suffered a $3.2 million loss.[1]

Continue Reading Another (Insurer) Bites The Dust: Virginia District Court Rejects Narrow Reading of Pollution Exclusion

As reported yesterday in Business Insurance, Lloyd’s of London underwriters have agreed to insure digital currency storage company, Kingdom Trust Co., against theft and destruction of cryptocurrency assets.  The cover comes after almost a decade-long search by Kingdom Trust for insurance to cover its crypto-assets.  According to the BI, Kingdom Trust sees the availability of insurance as a key factor in bringing institutional investors into the marketplace by dispelling concerns about lack of traditional safeguards in the emerging crypto-asset space.

Continue Reading Lloyds Jumps Into The Cryptocurrency Market, Insuring Part of Kingdom Trust’s $12 Billion Assets

The Sixth Circuit has rejected Travelers Casualty & Surety Company’s request for reconsideration of the court’s July 13, 2018 decision, confirming that the insured’s transfer of more than $800,000 to a fraudster after receipt of spoofed e-mails was a direct loss” that was “directly caused by” the use of a computer under the terms of ATC’s crime policy.  In doing so, the court likewise confirmed that intervening steps by the insured, such as following the directions contained in the bogus e-mails, did not break the causal chain so as to defeat coverage for “direct” losses.

Continue Reading Sixth Circuit Declines Reconsideration of American Tooling Center’s “Spoofing” Win