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WASHINGTON FEDERAL COURT FINDS NO “OCCURRENCE” UNDER HOMEOWNERS’ POLICY BASED ON INSURED’S VIOLATION OF CONDOMINIUM BYLAWS

Quarterly Newsletter Fall 2016 Two of the most commonly disputed issues regarding coverage under the insuring clause of a homeowner’s liability policy are whether “property damage” took place, and whether such damage was caused by an “occurrence.” In a recent case in Washington, the Court adopted a broad interpretation of “property damage” under a homeowner’s...

IDAHO SUPREME COURT RULES ANTI-STACKING CLAUSE IN INSURANCE POLICY IS AMBIGUOUS

Quarterly Newsletter Fall 2016 Insurers seeking to limit their liability may include so-called “anti-stacking” language in their policies. Such policy language is designed to limit the total available coverage to one policy and prevent the insured from “stacking” multiple policies on top of each other to expand the limits of available coverage. However, despite its...

WASHINGTON COURT FINDS NO “COLLAPSE” COVERAGE DESPITE ENGINEER’S OPINION THAT BUILDING COULD NOT SUPPORT REQUIRED LOADS UNDER THE BUILDING CODE

Quarterly Newsletter Fall 2016 For decades, Washington insurers have faced building “collapse” claims despite the fact that no Washington Court had rendered a clear definition of what “collapse” meant. That changed last year when the Washington Supreme Court held in Queen Anne Park Homeowners Association v. State Farm Fire and Casualty Company, 352 P.3d 790...

WASHINGTON APPELLATE COURT EXPANDS APPLICATION OF IMPLIED WAIVER OF ATTORNEY-CLIENT COMMUNICATIONS DURING DISCOVERY FOR REASONABLENESS HEARING FOLLOWING A COVENANT JUDGMENT

Quarterly Newsletter Fall 2016 On July 26, 2016, the Washington Court of Appeals, Division II held that an implied waiver of attorney-client communications may occur when an insured enters into a covenant judgment with a claimant and an insurer challenges the reasonableness of the settlement. However, the Court held that, under the proper standards, the...