Hunton Insurance Recovery Blog

Following the deaths of George Floyd, Breonna Taylor, Ahmaud Arbery, Tony McDade, and Rayshard Brooks, protests against systematic racism in general, and police brutality in particular, have swept the globe. These protests have largely been peaceful, but a small, fractious group of individuals has used the protests as cover to incite violence, damage property, and loot businesses. While it might be cold comfort to the affected business owners to hear that property damage is not the norm, most have insurance that protects their pecuniary interest.[1]

Navigating discovery in coverage and bad faith suits can often feel daunting to young associates. This is especially true given that the discoverability of common insurance materials, such as claim files, underwriting files, and reserve information, often varies by jurisdiction. Hunton Andrews Kurth attorneys Andrea DeField and Adriana Perez authored an article, published in the American Bar Association Insurance Coverage Journal, discussing some of the most common discovery issues that arise in insurance coverage and bad faith actions. The full article is available here

Geoffrey Fehling, an associate in Hunton Andrew Kurth’s Insurance Coverage practice, has been appointed to serve as Vice Chair of the Insurance Subcommittee of the American Bar Association’s Business Law Section Director and Officer Liability Committee. The Committee on Director and Officer Liability is part of the ABA Business Law Section’s global network of almost 40,000 business law professionals interested in expanding their knowledge, engaging with their professional communities, and advancing their experience through Section committees, programs, and meetings.

A North Carolina court recently ruled in favor of all sums allocation. Duke Energy Carolinas, LLC v. AG Insurance SA/NV, No. 17 CVS 5594 (N.C. Sup. Ct.). In that case, Duke Energy is seeking coverage for “liabilities linked to coal combustion residuals (‘CCRs’), i.e., coal ash, at fifteen Duke-owned power plants in North and South Carolina.” In a recent summary judgment decision, the court resolved a dispute between Duke and TIG Insurance Company, as successor to Ranger Insurance Company, about whether all sums allocation or pro rata allocation applied.

AXA, one of the biggest insurance companies in the world, has agreed to pay COVID-related business interruption claims by a group of restaurants in Paris after a court ruled that the restaurants’ revenue losses resulting from COVID-19 and related government orders were covered under AXA’s policies.

An appeals court has overturned an insurer’s successful dismissal of an insurance coverage lawsuit arising from the insurer’s refusal to defend a North Carolina assisted living operator in a False Claims Act lawsuit alleging more than $60 million in damages. The court held that that the insurer improperly denied coverage under the operator’s professional liability policy (covering “damages resulting from a claim arising out of a medical incident”) because the alleged improper billing had a causal connection to the operator’s failure to render medical professional services and, therefore, “arose out of” a covered medical incident.

A federal court recently added prejudgment interest for the period before and after an arbitration award despite the panel’s prior refusal to award interest. ExxonMobil Oil Corp. v. TIG Ins. Co., No. 16-cv-9527 (S.D.N.Y. May 18, 2020).

The Fourth Circuit recently held that an insurance company was obligated to cover millions in legal fees incurred in defending an employment suit against the owners of DARCARS, a DC-area based car dealership. The court ruled that the relevant policy exclusion was ambiguous and, as a result, construed the exclusion narrowly against the insurer and in favor of coverage.

Scott DeVries, the former head of Winston & Strawn’s insurance coverage practice, has joined Hunton Andrews Kurth in the firm’s San Francisco office.  Scott’s addition to the practice adds great depth and experience to an already rich roster of coverage professionals.  The move comes after Winston had transitioned its practice to the representation of insurers.  Hunton – a policyholder-only practice – offers Scott a platform to continue securing coverage for policyholders and a seasoned team of coverage attorneys across the firm’s national footprint.  Scott’s bio can be found here, and an article appearing in Law.com’s The Reporter announcing Scott’s arrival can be found here.

Pennsylvania’s highest court recently rejected Erie Insurance Exchange’s argument that it had no duty to defend a claim arising out of a shooting because it did not involve an accident, and therefore, there was no “occurrence” under the policy. The court held that the duty to defend was triggered because the underlying allegations were not “patently outside the policy coverage.” This decision can have far reaching effects on other kinds of claims involving intentional conduct.