On 18 March 2024 the California appellate court dismissed an appeal by Frantic Inc, professionally known as heavy metal band Metallica, claiming losses under a Cancellation, Abandonment and Non-Appearance Insurance policy because it was subject to a Communicable Disease exclusion excluding “any loss directly or indirectly arising out of, contributed by, or resulting from any communicable … Continue reading
In mid-March 2024 a Kentucky state jury found liability of $164 million against an insurance company which had sent out a tow truck on a roadside assistance job which rear-ended a motorist leaving her quadriplegic. In the end of the jury awarded the maximum amount she claimed, namely $111 million. The jury found that the insurance company … Continue reading
An insurance coverage dispute arose out of the construction of a “disappearing floor pool” at a residential home in Montana, US. The pool and spa included several water features such as an infinity edge, a basin to catch water overspilling the edge (a “vanishing edge basin”), a movable and disappearing pool and spa deck, a … Continue reading
In 2021, a warehouse developed by a property developer and already occupied by the tenant collapsed during a tornado causing injuries and deaths. The developer sought an indemnity under its insurance policy covering bodily injury and property damage liability. The right to indemnity was declined by the court because the warehouse was neither explicitly nor … Continue reading
In a claim for damages for personal injury arising from an event on the defendant airline, the Court of Justice for the European Union found that, for the purposes of Article 17 of the Montreal Convention, an accident can be an unforeseen, harmful, and involuntary series of intrinsically linked events taking place successively, without interruption, in … Continue reading
Under a “claims-made” liability insurance policy, whether a communication to the insured constitutes a “claim” or a “claim for damages” determines whether the policy is applicable to the claim. The Delaware Supreme Court held that an unclear and amorphous letter from an attorney did not constitute a “claim for damages” required by the policy. A … Continue reading
In a November 2023 judgment the High Court dealt with the principles of interpretation applicable to a trust deed. The question centred around which beneficiaries of the trust were entitled to a capital payment. The donor had since died and her and her late son’s estates were two of the four beneficiaries so entitled according … Continue reading
On 31 January 2024, the Supreme Court of Appeal delivered a judgment condemning state-owned entities (SOEs) that opportunistically institute review applications against their own prior decisions to avoid contractual obligations. The court emphasised that ‘self-reviews’ ought to be aimed at vindicating clean governance. The matter involved the award of a tender by an SOE … Continue reading
The insured pharmaceutical company was sued for flooding the California pharmaceutical market with opioids, concealing the facts, disregarding its duties, and ignoring risks as a result of which people became addicted and even died as a result of opioid use. The insured sought an indemnity from the insurer’s which covered “bodily injury caused by an … Continue reading
A US court held in January 2024 that where the coverage provided by one insurer “shall be in excess over any other valid and collectable insurance available to the Insured … unless such insurance is written only as specific excess insurance over the limit of liability provided in this policy” did not overlap with a … Continue reading
In January 2024 a US court found that the pecking damage to the roof of a Maryland shopping centre by turkey vultures was caused by an “infestation” excluded under the policy. The commercial property damage policy excluded cover for “nesting, infestation or discharge of waste by birds”. The court found that the vulture presence on … Continue reading
A rented Lamborghini worth $200 000, which collided with a tree and was totaled, was not covered under a personal motor policy because the policy did not cover a “vehicle rented to or used by” an insured, and also excluded loss to any ‘non-owned auto’ when used by the named insured or any family member “without … Continue reading
A sale contract for maritime surveillance aircraft delivered in Japan provided that the contract must “not be assigned or transferred in whole or in part by any party to any third party, for any reason whatsoever, without the prior written consent of the other party”. Such a transfer would be void. The buyer insured the … Continue reading
An electrical arcing event to the main switchboard of the insured caused significant damage to the switchboard and an extended power outage. The “property insured” included “individual switchgear for starting and controlling motors and interconnecting wires and/or cables”. The claim was for damage to the combination fuse switch unit. The court held that the use … Continue reading
In a December 2023 decision the Financial Services Tribunal upheld the debarment of the key individual of a fund of funds investment vehicle, Stringfellow Investments, on the grounds of his material failure to perform his oversight and management role in relation to the financial services provider as prescribed in the FAIS Act. A key individual … Continue reading
The British Insurance Brokers’ Association (BIBA) has issued its 2024 manifesto dealing with wide-ranging issues affecting brokers in the UK and calls on the UK Financial Conduct Authority to create and oversee a regulatory environment that encourages growth and competitiveness. An international survey of the direct cost of regulation across jurisdictions found that, as a … Continue reading
The new rules laid down by the Constitutional Court in December 2023, which will extend the three year prescription period for claims against legal practitioners in many cases (see our blog here), will have to be considered by professional indemnity insurers. Prescription will only start running once the client knows that the advice was incorrect … Continue reading
In December 2023 the Constitutional Court held that where a client sues their legal practitioner for losses suffered as a result of professional negligence, the knowledge of the facts which give rise to the commencement of running of the three year prescription period may include knowledge of the legal conclusion that the advice was incorrect. … Continue reading
In November 2023 the Supreme Court of Illinois held that construction defects caused by a subcontractor using defective materials, conducting faulty workmanship, and failing to comply with building codes causing defects in a residential townhome development is an “accident” under the policy and therefore an “occurrence”. There are lessons to be learned. The commercial general … Continue reading
This blog was co-authored by Michael McCarthy, Candidate Attorney. In November 2023 the Financial Action Task Force issued a Follow-up Report and Technical Compliance Re-Rating outlining the progress South Africa has made to address identified anti-money laundering and counter-terrorist financing deficiencies. The report highlights that while progress has been made to address most technical compliance … Continue reading
On 31 August 2023 the Supreme Court of Maryland held (overruling a previous decision) that there is no distinction between the ‘managerial’ and ‘non-managerial’ duties of directors of a Maryland corporation and said that the “sole source of the duties of the director is found in section 2-401.1 of the Maryland General Corporation Law (MGCL) which places … Continue reading
The full bench of an appeal court in the Pretoria High Court held that the claimant’s claim had prescribed three years after the contract was entered into despite there being a suspensive condition which has not fulfilled till four months after the agreement was entered into. Contracts with suspensive conditions should therefore specifically deal with … Continue reading
The South African High Court in Pretoria refused to grant an application seeking to enforce an interdict granted by a Bermudan court against a South African company that was at no stage present in Bermuda and did not submit to its jurisdiction. The court applied the principles recognised by South African law insofar as its … Continue reading
In November 2023 a Michigan Court of Appeals denied coverage to a ride-hailing driver whose rented vehicle was rear-ended whilst carrying a passenger for reward because the Under-Insured Motorist (“UIM”) benefits under the insurer’s policy excluded benefits for bodily injury sustained by any person when using “any vehicle that is owned by or available for … Continue reading