Strategies, Challenges, and Answers

No Duty To Defend Or Indemnify Intentional Acts

Sergio Mitchell worked at a local elementary school as a janitor.  One of the students kicked Mr. Mitchell’s mop bucket, breaking it.  When Mr. Mitchell got after the student, the student started cursing him out.  Mr. Mitchell grabbed the student by the neck.  The student said that Mr. Mitchell was choking him.  The School District Police intervened.  Ultimately, the student’s parent filed suit in the Eighth Judicial District Court.  Hohman v. Clark County School District and Mitchell, Case … [Read more...]

Negligent Entrustment Of Motorcycle Not Covered By Homeowner’s Policy

Mr. Gregory had a motorcycle. It was a piece of work. The tires were bald.  The front tire was underinflated.  The rear tire was overinflated.  Mr. Gregory loaned the motorcycle to his son Jimmey. But to be safe, Mr. Gregory gave his son a couple of modified helmets.Jimmey was taking Phillip Senteney on a ride on the bike.  Jimmey crashed. Phillip was hurt.Mr. Gregory had motorcycle insurance with $100,000 in liability coverage.  Phillip Senteney’s dad was not satisfied.  He refused … [Read more...]

Insurance Company owes No Duty to Defend where Policy includes Enforceable Pollution Exclusion

Back in the 2000s, Al Phillips the Cleaner, a Las Vegas dry cleaner, had a location in the Maryland Square Shopping Center near the Boulevard Mall.  A Ted Wiens Auto Service Center was just across the street.Residents of the Maryland Square area complained that they had been injured by the release of perchloroethylene, sometimes called PEC or PERC.  PEC is used in dry cleaning and as an industrial degreaser and spot remover.Of the PEC release, a local newspaper wrote: The chemical bled … [Read more...]

A Tale of Two Lawsuits.

It was the best of times for Nevada Direct Insurance Company. It was the worst of times for injured parties Michael and Sharon Smith.You see, the Smiths were hurt in an auto accident with a Nevada Direct policyholder Kuperman. Nevada Direct tried unsuccessfully to enlist Kuperman's cooperation in dealing with the Smiths’ claim. When Kuperman failed to cooperate, Nevada Direct filed a declaratory relief action against Kuperman, the Smiths and another injured party, Ms. Fields claiming the … [Read more...]

Once An Insured Proves Coverage, The Burden Shifts To the Insurer To Prove An Exception Or Exclusion

In Nevada Insurance Coverage lore, Victor Havas is legend.Cases involving Mr. Havas answer so many insurance coverage questions.  What duty does an insurance agent owe to a customer? Havas v. Carter, 515 P.2d 397, 89 Nev. 497 (1973). For more information, see here.  When is replacement value the appropriate measure of damages rather than actual case value? Havas v. Atlantic Ins. Co., 95 Nev. 415, 596 P.2d, 246 (1979). here.  How can an insurance company avoid a waiver when it investigates a … [Read more...]