Eversheds Sutherland 11th Circuit Business Blog
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“Not an Insured” Defense Prevails Despite Absence of Prior Reservation of Rights

In an unpublished per curiam decision, Travelers Cas. & Surety Co. v. Stewart, the Eleventh Circuit rejected an argument that an insurance company was barred by the Georgia Supreme Court’s decision in Hoover v. Maxum Indem. Co., 730 S.E.2d 413 (Ga. 2012) from raising the defense that an individual was not an insured under the relevant homeowners policy where the alleged insured had...

“Demonstrated Responsibility” under the Medicare Secondary Payer Act: A Contractual Obligation Suffices

In its second major Medicare Secondary Payer (“MSP”) Act decision in a month, the Eleventh Circuit held that an insurer’s contractual obligation, without a judgment or settlement, can provide the “demonstrated responsibility” necessary to allow a claim against the insurer for double damages under the Act. MSP Recovery, LLC v. Allstate Ins. Co., 2016 WL 4525222 (11th Cir. Aug. 30,...

Summary Judgment Vacated in Bad Faith Case

This week the Eleventh Circuit, applying Florida law, vacated summary judgment in favor of the defendant insurer in a case alleging bad faith for failure to communicate a settlement offer. Hinson v. Titan Ins. Co., ___ Fed. App’x ___, 2016 WL 4169117 (Aug. 8, 2016) .  The insurer received the offer, dated December 21, 2007 and including among other things a requirement that the...

Insurers May Be Liable for Double Damages for Failure to Reimburse Other Insurers Acting as “Medicare Advantage Organizations”

A divided panel of the Eleventh Circuit has joined the Third Circuit in holding that not only the government, but also a private insurer acting as a Medicare Advantage Organization (“MAO”), has a right of action for double damages when a primary payer fails to reimburse the MAO for payments the MAO has made. The case includes analysis of several provisions of the Medicare Act and a...

Eleventh Circuit Certifies Insurance Question to Florida Supreme Court

The Eleventh Circuit has asked the Florida Supreme Court to weigh in on whether a Florida alternative construction dispute resolution statute requiring notice of any construction disputes implicates an insurer’s duty to defend its insured against “suits.” The Florida legislature enacted Chapter 558 of the Florida Statutes in 2003 “establishing a notice and repair process to resolve...