The first wave of litigation challenging insurers’ use of artificial intelligence (“AI”) in coverage determinations has arrived. These early decisions suggest that courts willingly scrutinize AI’s role in claim handling and are willing to conclude that the reasonable use of an AI platform mustn’t be criticized. We’ve briefly addressed three (3) recent federal decisions – …
The New Jersey Supreme Court, last week, held that future medical expenses cannot be recovered against a tortfeasor when those expenses remain payable through available Personal Injury Protection (“PIP”) benefits. In Murray v. Punina, plaintiff sought damages for anticipated future surgeries and treatment, but the Court found those expenses were still “collectible” under the remaining …
New Jersey Supreme Court Limits Recovery of Future Medical Expenses Read More »
In Shemen v. Cincinnati Insurance Company, the United States Court of Appeals for the Third Circuit, applying New Jersey law, affirmed summary judgment in favor of The Cincinnati Insurance Company, reinforcing a straightforward principle: clear policy language will be enforced as written. The case arose from property damage caused by heavy rainfall during Hurricane Ida. Cincinnati denied coverage under …
Third Circuit Affirms Plain Meaning of “Surface Water” Read More »
Late notice has quietly reemerged as one of the most consequential, and unsettled, issues in first-party property insurance claims. While the policy language often appears straightforward, courts across the country are taking sharply different approaches to a fundamental question: Does late notice automatically bar coverage, or must the insurer prove prejudice? The answer increasingly depends …
Late Notice in Property Insurance: One Issue, Three Different Rules Read More »
A recent decision in Estate of Lokken v. UnitedHealth Group, Inc. highlights emerging litigation risks associated with insurers’ use of artificial intelligence tools to guide coverage decisions. The case involves allegations that UnitedHealth Group relied on an AI-driven predictive model developed by its subsidiary naviHealth to determine the appropriate duration of post-acute medical care for insureds. The court’s …
Property insurance policies often contain ordinance or law sublimits that cap what an insurer will pay for the increased cost of construction necessary to comply with current building codes. A recent Sixth Circuit decision underscores the enforceability of those provisions and rejects attempts to expand them through generalized statements about “full coverage.” In Piatt Lake …
Sixth Circuit Rejects Attempt to Expand Code-Upgrade Coverage Beyond Policy Sublimit Read More »
HKR is proud to announce the promotion of Patrick McHugh to Partner. Patrick’s journey with our team began years ago when he worked with us as a law clerk. Since that time, he has consistently demonstrated exceptional legal skill, sound judgment, and a strong commitment to our clients and colleagues. His growth as an attorney …
When an insurer issues claim payments, the job isn’t always finished once the check clears. The recent Pennsylvania Superior Court decision in Spilled Milk, Inc. v. Nautilus Insurance Co. (Oct. 28, 2025), serves as a reminder that even well-intentioned payment handling can expose a carrier to breach of contract and bad faith allegations when the …
When to Cry Over Spilled Milk: A Cautionary Tale for Insurers on Payment Handling Read More »
The Supreme Court of Pennsylvania recently rejected the “key witness” requirement related to a trial court’s assessment of any venue challenge. In short, venue challenges are now more straightforward and – as discussed below – potentially more viable for defendants seeking to avoid what may be considered plaintiff-friendly counties. The case relevant to this blog …
Pennsylvania Supreme Court Addresses Venue Transfer Read More »
Commercial real estate investors will frequently speak of “cap rate,” i.e. capitalization rate, when discussing the present and future value of a property. In our humble opinion many investors/owners could stand to look at this metric more frequently. An easily calculated formula, Cap Rate is a significant metric for the seasoned commercial real estate investor utilized …
