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Property in 60 Seconds: Texas Federal Court Addresses Depreciation of Labor

A federal district court in Texas has become the latest to weigh in on whether insurance carriers may depreciate labor when determining the Actual Cash Value (“ACV”) of a loss. On January 11, 2023, in Sims v. Allstate Fire,  the U.S. District Court for the Western District of Texas was asked to decide whether labor could be …

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Ohio Supreme Court Holds Ransomware Attack Does Not Cause Direct Physical Loss

This week, in EMOI Services, LLC v. Owners Insurance Company, the Ohio Supreme Court held that a ransomware attack on a medical billing company did not cause direct physical loss of or damage to software, where the company’s computer equipment remained unharmed.  The Court further explained that the computer software does not have a material …

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Third Circuit Affirms Judgment in Favor of Carrier on Insurance Fraud Claim

In State Auto Prop. & Cas. Ins. Co. v. Sigismondi Foreign Car Specialists, Inc., the Third Circuit upheld the District Court’s finding that the policyholder had committed insurance fraud when it provided altered invoices to support the values being claimed for allegedly damaged business personal property. The policyholder initially argued that the altered invoices were …

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Uber Eats Drivers Denied Underinsured Motorists Coverage Under New Jersey’s Network Company Safety and Regulations Act

A New Jersey trial court recently addressed an issue of first impression under the State’s new app-based transport services law, the Network Company Safety and Regulations Act, which requires companies that conduct business in the transportation sector, such as Uber, to provide at least $1.5 million in underinsured motorists coverage. In Malzberg v. Josey, the …

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CONGRATULATIONS!

HKR’s law clerks, Lexie Doran, Melissa Rheinstadter, and Andrew Hudson all passed the July 2022 Pennsylvania Bar Examination! We look forward to great things from them!

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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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Can cryptocurrency suffer direct physical loss?

Cryptocurrency, such as Bitcoin, Ethereum and Litecoin, is a digital or virtual currency.  Unlike traditional currency, cryptocurrency does not have any tangible existence, but rather exists purely as digital entries in an online database.  Given the relatively recent development of cryptocurrency, few courts have had occasion to address application of property insurance coverage principles to …

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PRESS RELEASE: Horst Krekstein & Runyon Announces New Partner

July 29, 2022 — Horst Krekstein & Runyon LLC (HKR), a nationally recognized law firm, announced today that Dan Grossman has been named a Partner. Mr. Grossman works in the firm’s Plymouth Meeting, Pennsylvania office. “Dan is a strong trial lawyer.  He’s also deeply committed to serving HKR’s insurance company clients.  It’s a pleasure to …

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