Executive Summary Blog

Executive Summary Blog

Legal developments affecting professional liability insurers

Tag Archives: florida

Prior Knowledge Exclusion Bars Coverage for Claim Against Insured Attorney

Posted in Prior Knowledge/Warranty Exclusion
Applying Florida law, a federal district court has held that a prior knowledge exclusion bars coverage for a claim against an insured attorney where the attorney knew, prior to applying for the policy, that he had failed to meet his client’s expectations for the representation.  David R. Farbstein, P.A. v. Westport Ins. Co., 2017 WL… Continue Reading

Eleventh Circuit Affirms Dismissal Where Professional Services Exclusion Unambiguously Created Joint, Not Several, Obligations

Posted in Professional Services
The United States Court of Appeals for the Eleventh Circuit has affirmed the dismissal of a breach of contract and bad faith case against two insurers based on the policies’ professional services exclusion, finding that the exclusion clearly created joint, not several, obligations.  Stettin v. National Union Fire Ins. Co. of Pittsburgh, Pa., 2017 WL… Continue Reading

Prior Acts Exclusion Bars Coverage for Claims Arising Out of Actions Predating Policy

Posted in Uncategorized
The United States Court of Appeals for the Eleventh Circuit, applying Florida law, has held that a prior acts exclusion barred coverage under a directors and officers liability policy for claims brought against insured persons for alleged fraudulent transfers, even though the transfers occurred within the policy period.  Zucker v. U.S. Specialty Ins. Co., 2017… Continue Reading

Allegations Concerning Wage Fixing in Violation of the Sherman Act Do Not Fall Within Professional Liability Coverage for “Counseling” Services

Posted in Dishonesty Exclusion, Personal Profit/Advantage exclusion, Professional Services
Applying Colorado law, the United States District Court for the District of Colorado has held that allegations of collusion to fix wages in violation of the Sherman Antitrust Act do not fall within the scope of professional liability coverage for “counseling” services because “counseling” does not include an alleged agreement to fix wages.  Colony Ins.… Continue Reading

Florida Statute Does Not Estop Insurer from Denying Reimbursement of Pre-Tender Defense Costs

Posted in Consent to settle/incur defense costs, Defense Costs
The United States Court of Appeals for the Eleventh Circuit, applying Florida law, has held that a thirty-day statutory deadline to deny coverage did not apply to an insurer’s refusal to reimburse the insured for its pre-tender defense costs because this refusal did not constitute a “coverage defense” within the meaning of the statute. Embroidme.com,… Continue Reading

Eleven Claims Arising Out of Negligently Repackaging Two Drugs Are “Related Claims”

Posted in Related Claims and associated exclusions
In a win for an insurer represented by Wiley Rein, the United States District Court for the Southern District of Florida, applying Florida law, has held that eleven claims by patients against a pharmacy and pharmacist for negligently repackaging two preservative-free drugs for injections by the same doctor to treat the same condition constituted “related… Continue Reading

Quality of Services Exclusion Bars Coverage for Online Auction Service’s Alleged Misrepresentations About Its Reliability

Posted in Cyber Policies and Issues
In another win for an insurer represented by Wiley Rein, the United States District Court for the Middle District of Florida, applying New Jersey and Florida law, has held that the quality of services exclusion in a technology errors and omissions policy barred coverage for a claim that the insured negligently misrepresented the safety and… Continue Reading

Insured’s Settlement Without Regard to Reasonableness Rendered Consent Judgment Unenforceable Against Insurer that Breached Duty to Defend

Posted in Bad faith/duty to settle, Consent to settle/incur defense costs
The United States Court of Appeals for the Eleventh Circuit, applying Florida law, has held that an insurer’s breach of the duty to defend did not render it liable for a consent judgment where the insured did not consider the reasonableness of the settlement amount.  Sidman v. Travelers Cas. & Sur., 2016 WL 6803034 (11th… Continue Reading

Statutory Request for Insurance Information Is Not a Claim

Posted in “Claim”
The United States District Court for the Middle District of Florida, applying Florida law, has held that a professional liability insurer was not obligated to contribute to defense costs where it received a letter during its policy period requesting insurance information pursuant to Florida statute, and a lawsuit regarding the incident discussed in the letter… Continue Reading

Related Claims Provision Does Not Conflict with Prior and Pending Litigation Exclusion

Posted in Related Claims and associated exclusions
A Florida federal court has held that a set of claims must be deemed first made at the time of the first such related claim in 2008, prior to the relevant policy period, notwithstanding the fact that a prior and pending litigation exclusion in the policies only excluded coverage for lawsuits brought prior to 2003.… Continue Reading

Dentist’s Alleged Sexual Misconduct Not Covered Under EPL Policy

Posted in Consent to settle/incur defense costs, Notice of Claim, Public Policy prohibition on insurance, Wrongful Act
In a victory for Wiley Rein’s client, a Florida federal court has held that an employment practices liability policy that provided coverage for “harassment” did not cover a licensing action arising out of a dentist’s alleged sexual misconduct. Turbyfill v. Scottsdale Indem. Co., No. 3:14-cv-283 (N.D. Fla. Feb. 24, 2016). The court also noted that… Continue Reading

Podcast: What Insurers Should Know About Bad Faith Claims in Florida

Posted in “Claim”, Bad faith/duty to settle
“The most troubling claims of bad faith in Florida tend to involve allegations that the insurer failed to settle a claim against its insured when a reasonably prudent insurer who was acting in the best interest of the insured would have done so,” Charlie Lemley, partner in Wiley Rein’s Insurance Practice. I recently had the opportunity… Continue Reading