Upholding a “law most favorable” provision with respect to the insurability of ill-gotten gains, the Delaware Superior Court has concluded that Delaware law, rather than New York law, applies to a coverage dispute regarding coverage for settlement amounts allegedly constituting ill-gotten gains. Sycamore Partners Mgmt., L.P. v. Endurance Am. Ins. Co., 2021 WL 761639 (Del. Super. Ct. Feb. 26, 2021). Because such amounts are insurable as a matter of Delaware public policy, the amounts at issue constituted covered Loss.

Continue Reading Under “Law Most Favorable” Provision, Delaware Law Applies and Does Not Prohibit Coverage for Settlement of Alleged Ill-Gotten Gains

The United States District Court for the Southern District of New York, applying New York law, has concluded that, even though a grievance letter to an insured constituted a “Professional Claim” that was not timely reported, the insurer waived its late notice coverage defense by waiting seven months to deny coverage. Hunt Constr. Group, Inc. v. Berkley Assurance Co., 2020 WL 7046842 (S.D.N.Y. Nov. 30, 2020).
Continue Reading Insured Failed to Timely Report Grievance Letter as ‘Professional Claim,’ But Insurer’s Late Notice Denial Waived By Seven-Month Delay