South Carolina Lawyers Weekly

Jan 9, 2013

Insurance – Auto – Exclusion – Named Driver Endorsement

Lincoln General Insurance Co. v. Progressive Northern Insurance Co. The General Assembly has determined that, for all vehicles registered in South Carolina, at least minimal liability coverage is necessary to protect the public.

Dec 12, 2012

Insurance – CGL – Exclusions – ‘Your Work’ & Products Completed Operations Hazard – Zoning – Incorrect Permits – Loss of Use

Walde v. Association Insurance Co. The plaintiff-homeowners alleged that their contractor failed to obtain the correct permits and that, as a consequence, their barn had to be partially torn down, resulting in a loss of use. The contractor’s insurer was not required to defend or indemnify the contractor against the homeowners’ claims because their claims fall within the “your work�[...]

Dec 4, 2012

Insurance – Long-Term Disability – ERISA – Benefits Denial – Standard of Review – Delegation of Fiduciary Authority

Belheimer v. Federal Express Corp. Long Term Disability Plan The defendant-plan did not give Federal Express the authority to delegate its fiduciary duties. Although the plan gave Federal Express the authority to appoint an appeals committee, the plan did not allow Federal Express to outsource the entire process to its third-party administrator.

Nov 28, 2012

Insurance – Auto – Florida Policy – S.C. Accident – Bodily Injury Coverage – No Compulsory Insurance Law

Thalia S. v. Progressive Select Insurance Co. Although plaintiffs’ Florida auto insurance policy does not provide bodily injury coverage for accidents occurring in Florida, its out-of-state provision says coverage will be provided, “If an accident to which this Part I applies occurs in any state other than the one in which a covered vehicle is principally garaged, and the state … ha[...]

Nov 26, 2012

Insurance – CGL – ‘Occurrence’ – Constitutional – Act No. 26 – Retroactivity – Contracts

Harleysville Mutual Insurance Co. v. State Where Act No. 26, 2011 S.C. Acts 88, fundamentally changes the definition of “occurrence,” the part of Act No. 26 that makes it apply retroactively is unconstitutional. We sever the retroactivity provision and declare only that provision unconstitutional.

Nov 9, 2012

Insurance – CGL – Assault & Battery Exclusion – Premises Liability

Founders Insurance Co. v. Barn Club, Inc. The defendant-nightclub’s commercial general liability policy excludes coverage for “bodily injury” arising from “assault and/or battery committed by … any … person” and arising from “the failure to suppress or prevent assault and/or battery by any person….”

Oct 19, 2012

Insurance – Breach of Contract – Duty to Defend – Underlying Claim – Tort/Negligence – Conversion – First Impression – Scrap Metal Business

CRC Scrap Metal Recycling, LLC v. Hartford Casualty Insurance Co. In an underlying lawsuit, Action Concrete Contractors sued the plaintiff-scrap metal business for buying and re-selling aluminum forms that had been stolen from Action Concrete.

Oct 9, 2012

Insurance – CGL & Garage Policy – Underlying Claims – Intentional Acts

MCE Automotive, Inc. v. National Casualty Co. Since the complaint in the underlying lawsuit alleges intentional conduct by a car dealership – i.e., taking advantage of a vulnerable adult by selling her 13 cars in 20 months – the dealership’s business insurance policies do not provide coverage for the claims in the underlying lawsuit.

Sep 21, 2012

Insurance – CGL – Auto Dealer – Errors & Omissions Liability Endorsement – Consumer Fraud Lawsuit

Graphic Arts Mutual Insurance Co. v. Caldwell Chevrolet, Inc. The auto dealers errors and omissions liability endorsement to the policy that the plaintiff-insurer issued to the defendant-auto dealership does not require the insurer to defend or indemnify the dealership against underlying claims of what amounts to consumer fraud.

Sep 4, 2012

Insurance – CGL – Duty to Defend & Indemnify – Pollution Exclusions – Former Fertilizer Plant – Real Property — Environmental

Ross Development Corp. v. Fireman’s Fund Insurance Co. Because of the pollution exclusions in the parties’ insurance policies, the defendant-insurers had no duty to defend or indemnify plaintiff against claims arising out of plaintiff’s disposal of waste products on real property that it owned during the policy periods.

Aug 22, 2012

Insurance – CGL – Defective Window Claims – Bad Faith Settlement – Within Deductible – Damages

Liberty Mutual Fire Insurance Co. v. J.T. Walker Industries Even though there was evidence from which the jury could find that the plaintiff-insurer acted in bad faith when it settled claims that had been filed against the defendant-insured, the insured failed to prove how it was damaged by any such bad faith.

Aug 20, 2012

Insurance – Breach of Contract – Standing – Unfair Trade Practices

Hill v. Canal Insurance Co. The plaintiff, an independent contractor/truck driver, is not a party to the insurance policy between the defendant-trucking company and the defendant-insurer; therefore, she lacks standing to bring a breach of contract claim based on the insurance policy. Defendants’ motions to dismiss are granted.