Nuclear Verdicts and Social Inflation: A Growing Concern for Insurers

Emerging Issues

In 2023, the U.S. witnessed a surge in so-called “nuclear verdicts™,” with 27 court cases each awarding over $100 million in damages. This trend has propelled social inflation—a term describing the rising costs of insurance claims beyond economic factors—to a 20-year high of 7%. Developments like these are reshaping the landscape of liability insurance, leading to increased …

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$25 Million Judgment Reversed By Florida Appellate Court

Florida

In this week’s Progressive American Insurance Company v. Gonzalez, a Florida state appellate panel provided additional clarity related to civil remedy notices and the notice necessary to insurers post-filing.  In doing so, the court reversed a $25 Million judgment. In Gonzalez, after being injured in a car accident and filing a UM/UIM claim with Progressive, …

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Cinnamon Ridge’s Sweet Clarity in Ohio Matching Dispute

Matching

A Ohio federal court has clarified what constitutes a “reasonably comparable appearance” under Ohio’s matching regulation.  In Cinnamon Ridge Condo. Ass’n  v. State Farm Fire & Cas. Co., the court determined whether a reasonably comparable appearance should be judged based on a ground level, or line of sight, viewpoint. Even an aerial view was considered, and rejected. …

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Property in 60 Seconds: Pennsylvania Federal Court Rejects Matching Claim

Matching, Property in 60 Seconds

According to Judge Gerald Pappert of the U.S. District Court for the Eastern District of Pennsylvania, a homeowner’s insurance policy did not cover the replacement of undamaged siding, even if the new siding — on the damaged portion — did not match. In Grote v. Am. Econ. Ins. Co., a windstorm caused a tree to fall on …

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Horst Krekstein & Runyon, LLC (“HKR”) proudly announces the addition of The Mayers Firm and Joe Mayers, Esquire to HKR’s litigation practice

Press Release

The arrival of The Mayers Firm’s lawyers and staff bolsters HKR’s insurance litigation practice, which focuses on high exposure/excess matters and liability defense.  HKR will continue to showcase a wealth of experience with complex litigation, appellate matters, and insurance coverage services. “I am excited to join HKR and look forward to contributing to the firm,” Mayers commented. “My team is tremendously experienced.  We’re …

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Maryland Federal Court Issues Conflicting Opinions on Waiver of Right to Appraisal

Appraisal

The U.S. District Court for the District of Maryland recently issued two opinions reaching opposing conclusions on whether a showing of actual prejudice is required to establish waiver of an insurance policy’s appraisal provision. In both cases, the court was asked to resolve a similar question: Whether an insured had waived its right to demand …

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Fourth Circuit Holds Cryptocurrency Cannot Suffer Direct Physical Loss

Cryptocurrency, Emerging Issues

The U.S. Court of Appeals for the 4th Circuit held yesterday that a crypto theft is not direct physical loss. In Sedaghatpour v. Lemonade Ins. Co., one of the relatively few recent coverage decisions addressing cryptocurrency, the court considered a theft claim of over $170,000 in cryptocurrency stored in a “hot wallet,” an internet-connected cryptocurrency …

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Property in 60 seconds: Insurers Prevail in PA Supreme Court COVID Litigation

COVID-19, Direct Physical Loss, Emerging Issues, Property in 60 Seconds

On September 26, 2024, via two decisions, Ungarean v. CNA and MacMiles v. Erie Insurance Company, the Pennsylvania Supreme Court confirmed what we, as an industry, have known since March of 2020 – economic loss alone, with an absence of direct physical loss or damage, does not constitute a covered first party property claim. The …

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Property in 60 Seconds: Massachusetts Supreme Court Addresses Surface Water

Flood, Property in 60 Seconds, Surface Water

On July 23, 2024, the Massachusetts Supreme Judicial Court held that an accumulation of rainwater on a roof is not considered “surface water.”  Regarding a flood sublimit in a commercial policy, the policyholder argued that surface water only included water that reaches the surface of the earth.  In contrast, the insurer argued that the term …

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