Strategies, Challenges, and Answers

Ambiguous State Farm UM Coverage Allows Wife To Recover For Separate Emotional Distress Caused By Witnessing Husband’s Death

Mrs. Brewington rode her motorcycle a little behind Mr. Brewington on State Highway 49 in California. An oncoming rider crossed the center line striking Mr. Brewington and ejecting him from his bike. Mrs. Brewington witnessed the collision, stopped and called for assistance. Mr. Brewington died on the way to the hospital with Mrs. Brewington by his side. The negligent rider had no liability insurance. However, the Brewingtons had UM coverage with their motorcycle carrier State Farm in the … [Read more...]

No Bad Faith Where There Is A Reasonable Dispute As To Coverage

Gary Lewis had a minimum limits auto policy with United Automobile Insurance Company.  UAIC notified Lewis that the policy was going to lapse.  Lewis took no action and made no payment until July 10, 2007.  However that payment was made ten days after he was supposed to have sent payment according to the renewal notice and two days after Lewis hit and seriously injured minor pedestrian Cheyanne Nalder. When Cheyanne Nalder’s father sued Lewis in behalf of his daughter, UAIC did not step … [Read more...]

The Nevada Supreme Courth Finds An Earth Movement Exclusion To Be Ambiguous And Unenforceable

In the 2011 case of Powell v. Liberty Mutual Fire Ins. Co., 127 Nev. Adv. Op 14, 252 P.3d 668 (2011) the Nevada Supreme Court struck down the insurance company’s “earth movement” exclusion as ambiguous and unenforceable. In light of an earlier federal case, the outcome was something of a surprise.  In the earlier case of Schroeder v. State Farm Fire and Cas. Co., 770 F.Supp. 558 (1991) the court considered facts very similar to those raised in the Powell decision.  The opinion recites those … [Read more...]

Ambiguous Additional Named Insured Endorsement Causes Employers Liability Carrier To Pay Bodily Injury Damages To Employee.

Clark Lift West, Inc. employed Mr. Pierce. One of Clark Lift’s clients was Southern Wine &Spirits. While servicing a Southern Wine and Spirits conveyor belt, Pierce slipped on a piece ofcardboard that was lying on the floor at the Southern Wine plant. Pierce fell onto the conveyorbelt and was hurt. Pierce sued Southern Wine for negligently allowing the cardboard to be on the floor. SouthernWine had liability coverage issued by Federal Insurance Company. Clark Lift hadliability insurance as … [Read more...]

Ambiguous Additional Named Insured Endorsement Causes Employers Liability Carrier To Pay Bodily Injury Damages To Employee

Clark Lift West, Inc. employed Mr. Pierce.  One of Clark Lift’s clients was Southern Wine & Spirits.  While servicing a Southern Wine and Spirits conveyor belt, Pierce slipped on a piece of cardboard that was lying on the floor at the Southern Wine plant.  Pierce fell onto the conveyor belt and was hurt. Pierce sued Southern Wine for negligently allowing the cardboard to be on the floor.  Southern Wine’s liability had liability coverage issued by Federal Insurance Company.  Clark Lift had … [Read more...]