Tag Archives: settlement

Oregon Supreme Court Overrules 40-Year Precedent on Covenant Judgments

Good news for policyholders today from the Oregon Supreme Court: the court overruled the 42-year-old Stubblefield decision, making it much easier for defendants in litigation to protect themselves if their insurance company fails to reach a reasonable settlement with the plaintiff. Today’s decision in Brownstone Homes Condo Ass’n v. Brownstone Forest Heights LLC means that … Continue Reading

Ninth Circuit Hands Oregon Policyholders a Major Win on “Known Loss”

In a June 25, 2015, to-be-published decision in Kaady v. Mid-Continent Casualty Co. the Ninth Circuit adopted a decidedly pro-policyholder interpretation of the oft-contested “known loss” provision that is standard in commercial general liability (CGL) policies, holding that an insured’s knowledge of damage to one part of a structure does not allow an insurer to deny coverage for … Continue Reading

“Pay and Chase” Jeopardized by Court of Appeals

Policyholders representing general contractors and developers frequently urge defending carriers to “pay and chase” – in other words, settle with the owner (“pay”) and then subrogate against the subcontractors or design professionals whose work caused the alleged damage (“chase”) to get reimbursed for the settlement with the owners.  Many carriers are increasingly leery of this … Continue Reading

Wa. Court of Appeals: Exhaustion of Primary Layer Means Actual Payment

In a new decision that has generated some interest nationally, the Washington Court of Appeals held November 12, 2013 that if an excess policy’s attachment language is sufficiently restrictive, the excess policy will not be triggered unless the primary carrier actually pays the full amount of its limits.  In this case, Quellos Group LLC v. … Continue Reading

Trial Court Rejects Constitutional Challenge to New Provisions of OECAA

Today the trial court judge in the long-running environmental coverage contribution battle between Lloyd’s and several other carriers for Zidell Marine rejected a constitutional challenge mounted by Lloyd’s to one of the newest provisions of the Oregon Environmental Cleanup Assistance Act (OECAA).  This case has had many zigs and zags but to briefly sum up, … Continue Reading

Oregon Supreme Court Sets Limits on What Constitutes “Proof of Loss” For Attorney Fee Purposes

Today the Oregon Supreme Court held that a policyholder is not entitled to attorney fees under Oregon’s fee-recovery statute for insurance coverage disputes (ORS 742.061) until the insured has given the insurance company information that at least suggests that coverage is requested under the policy  The case is Zimmerman v. Allstate.  The facts, briefly: Zimmerman was … Continue Reading

Oregon Supreme Court Will Review Landmark Case on Stipulated Judgments

The Oregon Supreme Court has accepted review in the landmark Brownstone Homes Condo Ass’n v. Brownstone Forest Heights LLC case, on the issue of stipulated judgments.  To simplify greatly, the case involves a developer (the LLC) that was sued along with one of its subcontractors, A&T Siding, by the condo association.  A&T was denied coverage by its … Continue Reading

Duty to Cooperate Alive and Well in Oregon

Insurers are celebrating the new decision from Oregon’s federal district court in the long-running Charter Oak et al. v. Interstate Mechanical et al. case finding that the policyholder lost all coverage by breaching the duty to cooperate.  In my view, this is a bad-facts-make-bad-law situation involving a fact pattern not likely to be repeated, that will unduly … Continue Reading
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