SDV Insights

The State of Connecticut recently joined a growing list of state governments attempting to hold ExxonMobil ("Exxon") accountable for causing climate change, bringing the total number of such states to 21. Connecticut alleges that the oil & gas giant lied to the public for decades about climate science and its own contributions of harmful toxins to the environment.

Lennar Hingham Holdings, LLC ("Lennar") built a twenty-eight-building, 150-unit condominium project containing twenty-four discrete phases over a seven-year span. The condominium association subsequently brought an action against Lennar and others alleging design and construction defects to four main components of the common elements: "decks and columns," roofing/flashing," "exterior walls/flashing/building envelope," and "irrigation system."

On November 4, 2020, the U.S. District Court for the Western District of Texas, San Antonio Division ruled that 124 separate cases of food poisoning at the Pasha Mediterranean Grill restaurant over a four-day period arose out of a single occurrence.

The Power & Energy sector faces a multitude of risks that impact output and profitability, requiring sound risk management and robust insurance programs. As of recent, like most industries, there have been significant challenges facing the industry in light of COVID-19.

Saxe Doernberger & Vita's ("SDV") Natural Disaster Recovery Group presents the Hurricane Season Policyholder's Handbook.

Amid the current movement for racial justice, a new trend has emerged in the world of Directors and Officers insurance. A recent wave of lawsuits that are expected to trigger D&O policies has been brought against major corporations in the U.S., with a message reflective of the movement: that racial diversity belongs in the boardroom.

In Optical Services USA/JCI v. Franklin Mut. Ins. Co.,1 the New Jersey Superior Court denied the insurer's motion to dismiss the policyholders' COVID-19 coverage suit. The Plaintiffs in this case were optometrists' offices forced to close by New Jersey Governor Phil Murphy's Executive Order No. 107, which temporarily shut down non-essential businesses to help slow the spread of COVID-19 in New Jersey.

Shutdowns resulting from the COVID-19 pandemic have prompted an unprecedented number of business income and business interruption insurance claims. Many claims have resulted in litigation and require judicial intervention to determine whether private insurance carriers owe policyholders indemnification for pandemic related losses.

The Hartford's so-called virus exclusion in its commercial property forms is getting a workout, and policyholders now have an argument that may help their cases move past the pleadings stage. A U.S. District Court in Florida has deemed the exclusion ambiguous and denied an insurer's motion to dismiss.

Recently, federal courts in California and Florida dismissed claims brought by restauranteurs against their insurance companies after the insurers denied business-interruption coverage for losses related to COVID-19 quarantine orders. In both cases, the courts held that the policyholders had not sufficiently alleged that their properties had suffered "direct physical loss or damage," as required by both policies to trigger coverage.