The United States District Court for the District of Columbia, applying District of Columbia law, has held that there is no coverage for three lawsuits filed against an insured company because the lawsuits related to an email demand previously received by the company which it failed to report during the applicable claims made and reported policy period.  The court further held in the alternative that, even if the email was not a “claim,” the company failed to provide notice of the lawsuits under the subsequent policy as soon as practicable and the insurer was entitled to deny coverage under the later policy, without showing prejudice.  Zurich Am. Ins. Co. v. UIP Cos., 2021 WL 602901 (D.D.C. Feb. 16, 2021).

Continue Reading No Coverage for Three Lawsuits Related to Email Not Timely Noticed; No Showing of Prejudice Required Where Notice Not As Soon As Practicable

The Missouri Court of Appeals, applying Missouri law, has held that multiple acts of negligence committed by a lawyer while representing a married couple in a lawsuit are related acts or omissions constituting a single claim under the law office’s professional liability policy, and thus were subject to a single limit of liability.  Stacy v. Bar Plan Mut. Ins. Co., 2021 WL 243515 (Mo. Ct. App. Jan. 26, 2021).  The court also held that the insurer was not estopped from asserting the limits of liability when it failed to send reservation of rights or denial of coverage letters relating to its single-claim position.

Continue Reading Lawyer’s Multiple Acts of Negligence Constitute A Single Claim

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

Applying California law, a federal district court has held that a request for payment of overdue legal fees does not constitute a claim for purposes of a D&O policy. Domokos v. Scottsdale Ins. Co., Case No. 5:20-cv-00366 (N.D. Cal. July 16, 2020). The court also held that the policy’s prior acts, breach of contract, and creditor claims exclusions did not bar coverage.

Continue Reading Pre-Policy Email Demanding Payment of Overdue Legal Fees is Not a Claim