Recent Articles

Nautilus Survives Motion to Dismiss Property Claim for Business Losses Caused by Rogue Employee in China

Dana Ferestien
March 19, 2012 16:29

In late 2008, Nautilus attempted to terminate the manager of its Shanghai subsidiary, Xu Xiaobin. But Mr. Xu refused to cooperate or turn over key items including the subsidiary's business license and "chop" (carved ink notary stamp), both of which are needed in order to conduct business...

No Fire Damage Coverage for Uncooperative Homeowner

Dana Ferestien
March 16, 2012 20:25

The Oregon federal district court recently addressed the legal effect of an insured's breach of a document production or similar duty after loss provision in a first party property policy. In Schoning v. State Farm Fire & Cas. Co., 2012 U.S. Dist. LEXIS 31371 (D. Or. March 8, 2012), the...

Oregon Court of Appeals Refuses to Apply Liability Limits Increase Retroactively

Dana Ferestien
March 15, 2012 15:57

Several months after a restaurant customer killed two people in a drunk driving accident, the insured restaurant sought and received an increase in their liquor liability limits from $1 to $3 million. The insurer issued an endorsement to make this change, and the endorsement stated that the change...

BROKER NEGLIGENCE CLAIM DISMISSED ON SUMMARY JUDGMENT

Dana Ferestien
March 10, 2012 00:08

Earlier this week, Judge Marsha Pechman granted summary judgment in favor of an insurance broker on a claim that it had failed to obtain adequate insurance for its customer. The case – SMS Services LLC v. HUB Int’l. NW, LLC (2012 U.S. Dist. LEXIS 29824) (March 5, 2012) –...

WASHINGTON COURTS REJECT EXTRA-CONTRACTUAL CLAIMS AGAINST FIRST PARTY INSURERS

Dana Ferestien
February 25, 2012 01:52

Earlier this week, two Washington courts rejected extra-contractual claims against first party property insurers that had paid out benefits and followed the appraisal provisions in their policies.  In Pinney v. American Fam. Mut. Ins. Co. 2012 U.S. Dist. LEXIS 22328 (Feb. 22, 2012), United...

"Equitable Sharing Rule" Requires PIP Insurer to Pay Pro Rata Fees Even When it Also Insures and Pays Settlement on Behalf of the Tortfeasor

Dana Ferestien
February 15, 2012 16:41

In a 7-1 decision in Matsuyak v State Farm & Casualty Co., handed down on February 9, 2012, the Washington Supreme Court extended the common fund rule adopted in Mahler v. Szucs, 135 Wn.2d 398 (1998) to circumstances where an automobile insurer pays personal injury protection (PIP) benefits to...

Pizza Delivery Driver's Accident Uncovered Because Insured Failed to List All of its Businesses

Dana Ferestien
February 04, 2012 02:19

When a business applies for insurance, it is important to pay attention to details.  Among other things, an insured needs to list all of the entities for which the business needs coverage.  The Court of Appeals' recent decision in West Coast Pizza Co., Inc. v. United Nat. Ins. Co....

Damage Caused By Water-Borne Debris Beyond Flood and Wave Exclusion in Homeowner's Policy

Dana Ferestien
January 17, 2012 16:53

Washington law has long provided that "[a]n insured may not avoid an exclusion merely by affixing a specific label or characterization to the act or event causing the loss." Thomas V. Harris, Washington Insurance Law, § 6.10, fn. 179. That rule was recently put to the test before...

Covenant Judgment Scrutinized and Greatly Reduced

Dana Ferestien
January 12, 2012 16:52

Construction defect plaintiffs in Washington continue to use covenant judgments in an effort to force large settlements with developers' insurers. If the developer's insurer is unwilling to fund a settlement, the plaintiff and defendant developer stipulate to entry of a monetary judgment and the...

Washington Federal District Court Rejects Technical Claims Handling Violations as Basis for Extra-Contractual Claims Against Liability Insurer

Dana Ferestien
January 09, 2012 17:04

Washington's claims handling regulations include short deadlines for responding to an insured's tender of a claim for defense and indemnity: 10 working days to acknowledge a tender (WAC 284-30-360(1)), and 30 days to complete its investigation of a claim unless the investigation cannot reasonably...