Month: September 2022

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Eastern District of Pennsylvania Enforces Assignment of Statutory Bad Faith Claim to Water Mitigation Contractor

In nearly identical holdings, the U.S. District Court for the Eastern District of Pennsylvania in Royal Water Damage Restoration Inc. v. Allstate Vehicle Prop. Ins. Co. and Royal Water Damage Restoration v. State Farm Fire Cas. Co. recently found that Royal Water Damage Restoration, a water remediation company, has standing as an assignee to sue an …

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Eleventh Circuit Refuses to Infer “Follow the Fortunes” Clause in Reinsurance Contract

A “follow the fortunes” clause is an agreement within a reinsurance contract that imposes a duty on the reinsurer to honor and reimburse good-faith payouts by the insurer to the underlying claimant. In Public Risk Mgmt, of Fla. v. Munich Reinsurance Am., Inc., Munich refused reinsurance coverage on the grounds that the loss occurred before …

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