Executive Summary Blog

Executive Summary Blog

Legal developments affecting professional liability insurers

Tag Archives: Minnesota

Insured Fails to State a Claim for Bad Faith and Cannot Pursue Extra-Contractual Damages Without Independent Tort

Posted in Bad faith/duty to settle
Applying Minnesota law, the United States District Court for the District of Minnesota has held that, while an insured’s breach of contract claim was adequately pled, the insured could not pursue a cause of action for bad faith or seek relief in the form of extra-contractual damages.  Lunde v. Cincinnati Ins. Co., 2018 WL 1972475… Continue Reading

Eighth Circuit Affirms That Notice Given During Policy Period but Seven Months After Complaint Filed is Not “As Soon As Practicable”

Posted in Notice of Claim
The United States Court of Appeals for the Eighth Circuit, applying Minnesota law, has affirmed summary judgment in favor of an insurer, holding that the condition precedent of timely notice “as soon as practicable” was not met where the insured provided notice of a lawsuit seven months after the lawsuit was filed without offering any… Continue Reading

Insured v. Insured Exclusion Bars Coverage for Shareholders’ Suit Spearheaded by Former Director

Posted in Insured v. Insured Exclusion
Applying Minnesota law, the United States Court of Appeals for the Eighth Circuit has held that a policy’s insured versus insured exclusion bars coverage for a suit filed against the insured company by a former director and two other shareholders regarding share value.  Jerry’s Enterprises, Inc. v. U.S. Specialty Ins. Co., 2017 WL 104468 (8th… Continue Reading

Minnesota Federal Court Rejects First to File Rule and Transfers Coverage Litigation to Washington Despite Issuance of Policy in Minnesota

Posted in Coverage Litigation - Declaratory Judgment Actions
The United States District Court for the District of Minnesota has held that a coverage dispute must be transferred to federal court in Washington, in deference to the insured’s later-filed coverage action pending in that court. Everest Indem. Ins. Co. v. Ro, 2016 WL 4007578 (D. Minn. Jul. 26, 2016). The court also concluded that,… Continue Reading

Seven-Month Delay Constitutes Late Notice as a Matter of Law

Posted in Bad Faith, Defense Costs, Notice of Claim
A Minnesota federal district court has held that an insurer was entitled to summary judgment in a breach of contract suit brought by its policyholder after the insurer denied coverage because the policyholder failed to provide notice of the suit “as soon as practicable” in accordance with the terms of the policy. Food Market Merch.,… Continue Reading

Exclusions Bar Coverage Under Employee Benefits Liability Policy for Claims Arising From Alleged Underfunding of Pension Plan

Posted in Other Insurance
The United States District Court for the District of Minnesota, applying Minnesota law, has held that certain policy exclusions apply to bar coverage under an employee benefits liability policy for claims arising from the insured’s alleged underfunding of its employees’ pension plan (Plan) and failure to disclose information regarding the funding of the Plan and… Continue Reading