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Posts tagged as “insurance law”

Illinois Supreme Court Holds Homeowner’s Insurer Could Not Reduce Loss Reimbursements by Depreciating Cost of Labor

The Supreme Court of Illinois recently held that a homeowner’s insurance company could not deduct depreciation from reimbursements for labor costs from the actual cash value of a covered loss, because the policy at issue did not specifically and unambiguously allow the practice.

11th Cir. Holds ‘Invasion of Privacy’ Exclusion Barred Coverage for TCPA Class Action Settlement

The U.S. Court of Appeals for the Eleventh Circuit recently affirmed a trial court’s ruling that, under Florida law, a policy exclusion that barred coverage for claims arising out of an invasion of privacy also unambiguously excluded coverage for claims alleging violations of the federal Telephone Consumer Protection Act, when the complaint specifically mentioned invasions of privacy.

Calif. App. Court (2nd Dist) Holds Interest Payment Not Required on Escrowed Hazard Insurance Proceeds

The Court of Appeal of the State of California, Second Appellate District, recently held that neither California Civil Code section 2954.8 nor the parties’ loan agreement required the mortgagee to pay interest on insurance proceeds it held in escrow following the destruction of the plaintiff's home.

7th Cir. Holds Insurer Had No Duty to Defend FDCPA, TCPA, and Related Common Law Claims

The U.S. Court of Appeals for the Seventh Circuit recently affirmed a trial court’s judgment that an insurer had no duty to defend a debt collector in an action brought by a consumer asserting claims under the federal Fair Debt Collection Practices Act (FDCPA) and the federal Telephone Consumer Protection Act (TCPA), as well as common law claims of defamation and invasion of privacy.

7th Cir. Rules in Favor of Mortgagee in Insurance Coverage Dispute Involving Fire in Collateral Property

The U.S. Court of Appeals for the Seventh Circuit recently reversed summary judgment in favor of an insurer and against a mortgagee in an action involving state tort claims arising from a deadly fire in the collateral property, holding that an issue of fact existed regarding who was in possession of the property when the fire occurred.

3rd Cir. Rejects Allegations That Hazard Insurance Premiums Were Fraudulently Inflated

The U.S. Court of Appeals for the Third Circuit recently affirmed the dismissal of allegations that a mortgage lender colluded with an insurance company and insurance agent to inflate the rate of the borrowers’ force-placed hazard insurance policies in violation of various consumer protection statutes, RICO, and the common law.

NY High Court Rules in Favor of Lender in Action to Recover Settlement and Defense Costs From Insurer

In an action by a lender and its affiliate to recover insurance proceeds for defense costs of a federal qui tam action and indemnification for the resulting settlement, the New York Court of Appeals recently held that an arbitration panel can reconsider an initial determination, or “partial final award,” so long as the determination or award does not resolve all of the issues submitted for arbitration.

11th Cir. Reverses Injunctive Class Certification Because Actual Relief Was Damages

The U.S. Court of Appeals for the Eleventh Circuit recently reversed a trial court’s certification of an injunction class, holding that the injunctive relief sought by the class was improper because the true relief sought was really damages. A copy of the opinion in AA Suncoast Chiropractic Clinic, P.A. v. Progressive American Insurance Co. is available at:  Link to Opinion. In 2012, Florida’s law requiring automobile insurance policies to provide personal injury protection (“PIP”) benefits up to $10,000 was amended so that “not every injured motorist will be eligible to access all $10,000 in benefits.” Coverage is capped at $2,500…

8th Cir. Holds Alleged Contract for Interest Rate Reduction May Not Be Barred by Statute of Frauds

The U.S. Court of Appeals for the Eighth Circuit recently held that a borrower’s claims concerning lender-placed insurance practices were barred by res judicata, because the alleged practices were the subject of a class action suit in which the borrower was a class member who was provided notice of the settlement and did not object to the settlement. However, the Eighth Circuit also concluded that the servicer failed to establish that the statute of frauds barred the borrower’s claims concerning an alleged contract for interest rate reduction. A copy of the opinion in Calon v. Bank of America, NA is…

8th Cir. Holds Property Damage Insurer Improperly Withheld ‘Labor Depreciation’ from Claim Payments

The U.S. Court of Appeals for the Eighth Circuit recently affirmed a trial court’s order certifying a class of Arkansas homeowners against an insurer that improperly withheld amounts for labor depreciation when paying covered property damage claims under their insurance policies. A copy of the opinion in Stuart v. State Farm Fire and Casualty Company is available at:  Link to Opinion. A putative class of Arkansas homeowners (“insureds”) sued their insurer alleging that between Nov. 21, 2008 and Dec. 6, 2013 the insurer improperly withheld labor depreciation costs when paying insureds for covered property damage under their insurance policies. The insureds…