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Posts tagged as “insurance law”

11th Cir. Rejects Borrower Challenges Alleging Lender-Placed Insurance Overcharges, Kickbacks

The U.S. Court of Appeals for the Eleventh Circuit recently affirmed the dismissal of consolidated putative class action cases against mortgage loan servicers and an insurance company, holding that the filed-rate doctrine barred the plaintiffs’ claims. A copy of the opinion in Pankaj Patel, et al v. Specialized Loan Servicing, LLC, et al is available at:  Link to Opinion. The plaintiffs in the two trial court cases, consolidated on appeal, alleged that their mortgage loan servicers breached the loan documents and the implied covenant of good faith and fair dealing by supposedly overcharging for “force-placed” insurance (FPI) when the borrowers failed…

6th Cir. Holds Michigan’s 6-Year Statute of Limitations Applies to Penalty for Untimely Insurance Claims Payments

In a case involving a claim on a fire insurance policy relating to damaged real estate, the U.S. Court of Appeals for the Sixth Circuit recently held that the insurance policy’s two-year limitations provision did not apply to a claim brought under section 500.2006(4) of Michigan Complied Laws because it was not a claim “under the policy,” and instead Michigan’s “catch-all” six-year period of limitations applied. In addition, and contrary to two previous unpublished rulings, the Sixth Circuit determined that a private cause of action exists under section 500.2006(4) Accordingly, the Sixth Circuit determined that the insured’s claim was timely,…

7th Cir. Holds Bankers’ Professional Liability Policy Did Not Cover Excessive Fees Claims

The U.S. Court of Appeals for the Seventh Circuit recently affirmed the dismissal of a bank’s lawsuit against its insurer for breach of contract and bad faith denial of coverage, holding that the insurance policy’s exclusion for any claim based upon or arising from fees or charges applied to the facts alleged. The bank argued that the primary sources of the claims against it concerned the bank’s policies and procedures, which were not the subject of a policy exclusion.  However, the Court held the insurer was not required to defend or indemnify the bank for the underlying $24 million settlement…

9th Cir. Holds TCPA Claim Not Covered Due to ‘Invasion of Privacy’ Exclusion

The U.S. Court of Appeals for the Ninth Circuit recently held that a liability insurance policy that broadly excluded coverage for invasion of privacy claims also excluded coverage for claims for violations of the federal Telephone Consumer Protection Act. A copy of the opinion in L.A. Lakers v. Federal Ins. Co. is available at:  Link to Opinion. In 2012, a class action complaint was filed against the Los Angeles Lakers for allegedly sending text messages using an automatic telephone dialing system in violation of the TCPA, 47 U.S.C. § 227, et seq.  The Lakers asked their insurer to defend them against…

Illinois Fed. Court Holds No ‘Bad Faith Denial Of Coverage’ Against Title Insurers in Illinois

The U.S. District Court for the Northern District of Illinois recently held that a title insurer may exclude coverage under the exception for defects “created, suffered, assumed, or agreed to by the insured claimant” without intentional or wrongful conduct by the insured. In so ruling, the Court also held that the Illinois statute for bad faith denial of coverage by insurers did not apply to title insurers. A copy of the opinion in Bank of America, NA v. Chicago Title Insurance Company is available at:  Link to Opinion. In 2007, a developer sought to purchase real estate in Yorkville, Illinois, to…

3rd Cir. Holds No TCPA Coverage Under Businessowners Insurance Policy

The U.S. Court of Appeals for the Third Circuit recently held that a businessowners insurance policy did not cover a class action judgment that arose out of unsolicited advertisement communications in violation of the federal Telephone Consumer Protection Act. A copy of the opinion in Auto-Owners Insurance Company v. Stevens & Ricci Inc. is available at:  Link to Opinion. A business was solicited by an advertiser who claimed to have a fax advertising program that complied with the TCPA, 47 U.S.C. § 227. The business allowed the advertiser to fax thousands of advertisements to potential customers on its behalf. Six years later, a…

Calif. Supreme Court Holds Atty Fees to be Included in Determining Constitutional Limits of Punitive Damages Awards

The Supreme Court of California recently held that, in determining whether punitive damages awards are within constitutional limits, attorney’s fees may be included in the calculation of the ratio of punitive to compensatory damages, regardless of whether the fees are awarded by the trier of fact as part of its verdict or are determined by the trial court after the verdict has been rendered. A copy of the opinion in Nickerson v. Stonebridge Life Insurance Company is available at:  Link to Opinion. The plaintiff suffered a broken leg and was taken to a veterans hospital.  He experienced several complications from his…