Insured Loses on "Sole Negligence" Language

In Barden Mississippi Gaming LLC v. Great Northern Ins. Co., 2011 WL 1262264 (5th Cir. Apr. 6, 2011), the U.S. Court of Appeals for the Fifth Circuit held that an insurer did not have a duty to indemnify an additional insured because the policy provided coverage only for the named insured's "sole negligence" and the named insured was only found 50% negligent in the underlying action. In a previous appeal in the same matter, the Court held that the insurer had a duty to defend because it was possible that the additional insured could be found 100% liable. The court, however, also concluded that the question of indemnification was premature as the underlying case had not yet reached a verdict. Ultimately, the jury in the underlying action found the additional insured 50% negligent and the insured 50% negligent. As a result, the Fifth Circuit ruled that the insurer was not obligated to indemnify the additional insured for the judgment in the underlying case because the additional insured was not "solely negligent."

Be wary of "solely negligent" language in either an insurance policy or any other contract. You could be giving away valuable rights in agreeing to be paid or be indemnified with such language. If you would like a copy of this decision or have any questions regarding this decision, please feel free to contact me via my profile on LinkedIn at

http://www.linkedin.com/in/michelleoterovaldes or miamipandi@comcast.net.

Comments

ReThink + ReUse Center "It's How We Roll" Fun Raiser -- Bowling Night -- October 16, 2014

As many of my readers may be aware, I am the Chair of the ReThink + ReUse Center, a non-for-profit educational and environmental Center in Miami educating children into rethinking reuseable materials for learning through play. The ReThink and ReUse Center’s Quality Play is Learning Program provides a series of educational and participatory workshops based on the philosophies of Reggio Emilia and Harvard's Project Zero Visible Thinking. The Children’s Trust is the major funder of this program, but the Center is required to continually fundraise for the balance its annual budget. The Center is having a fun event you are invited to--the ReThink + Reuse Center’s “It’s How We Roll” bowling event on October 16, 2014 at Splitsville Luxury Lanes from 18:00 to 21:30 hours. My firm, Comcast and Waste Management are major sponsors for this event, but we could use a few more sponsors. If you are interested in sponsoring the event, please let me know by reaching me at mov@chalos...

Maritime Law--Major Changes in the U.S. Relationship with Cuba

On December 17, 2014, President Obama announced that the United States would be setting a new course in U.S. relations with Cuba by easing some of the trade and travel restrictions which have been in place for over fifty (50) years. President Obama stated that the policy of isolating Cuba has failed to accomplish the long term objective of promoting the emergence of a democratic Cuba, stating that doing the same thing and expecting a different result is no good for the American or Cuban people. The main goal in lifting some of the restrictions is purported to focus on improving human rights, empowering democratic reforms, and promoting the independence of the Cuban people so that they do not need to rely so heavily on the Cuban state. As a result of President Obama’s announcement, on January 16, 2015, the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) amended the Cuban Assets Control Regulations (31 CFR section 515) and the U.S. Depa...

Maritime Law--Florida's Arbitration Code Is Now Revised

Those of us that practice maritime law regularly must always be on the lookout for the contract that may contain an arbitration clause. Thus, any laws related to arbitration are important to those of us practicing in this sector. The Florida legislature has revised the Florida Arbitration Code ("FAC") and named it the Revised Florida Arbitration Code (the " Revised Act"). Since 1967, the FAC had gone mostly unchanged. The Revised Act addresses concepts that were not addressed in the old law, such as the ability of arbitrators to issue provision remedies, challenges based on notice, consolidation of separate arbitration proceedings, required conflict disclosures by arbitrators, among other major changes. The Revised Act lays out a detailed framework for international arbitration conducted under Florida law and repeals sections of the FAC. The Revised Act spells out what experienced arbitrators knew the case law to be, but codifies it all in one pl...

Miami Shipping Law

Search This Blog