As the Fifth Circuit reminded us in a December 21 de
cision, primary insurers can find themselves in excess insurers’ shoes if they reject settlement demands within their policy limits. In American Guaranty & Liability Insurance Co. v. ACE American Insurance Co., the Fifth Circuit upheld a lower court ruling requiring a primary insurer
One Day, Two Different Decisions: Mississippi and Texas Federal Courts Issue Opinions in COVID-19 Insurance Cases
Confirming the growing split of decisions among federal courts addressing COVID-19 insurance issues, two district courts in the Fifth Circuit differed in their interpretation of virus exclusions, with one denying coverage and the other permitting the policyholder’s claim to proceed.
On November 4, a Mississippi federal district court dismissed a restaurant’s complaint for business interruption
Court Denies Efforts to Consolidate COVID-19 Suits
The Panel on Multidistrict Litigation has rejected efforts to centralize pretrial proceedings in actions in Pennsylvania and Illinois seeking insurance coverage for business interruption losses resulting from COVID-19. The request for MDL-status was hotly contested, with insureds in more than 175 coverage actions responding to the centralization motions. Some insureds supported centralization in either Pennsylvania