By Emily S. Hart on Posted in Allocation,“Claim”,Notice of Claim,Wrongful ActThe United States District Court for the District of Rhode Island has concluded that a stockholder demand letter for legal expenses in connection with a dispute regarding the rights of different classes of stockholders constitutes a covered claim for a wrongful act. Twin River Worldwide Holdings, Inc. v. Nat’l Union Fire Ins. Co. of Pittsburgh,… Continue Reading
By Nicole Audet Richardson on Posted in “Claim”,Notice of ClaimAn Illinois appellate court has held that a trial court properly awarded judgment to an insurer because it had no duty to defend or indemnify its insured under its claims-made-and-reported policy where notice of the underlying negligence lawsuit came in more than nine months after the policy was cancelled. Southwest Disabilities Services and Support v.… Continue Reading
By Margaret Thomas on Posted in “Claim”,Late NoticeIn a case that was briefed and argued for the primary carrier by Wiley Rein at the trial court level and on appeal, the U.S. Court of Appeals for the Sixth Circuit unanimously affirmed summary judgment on behalf of the insurers where the insured bank concealed key facts concerning a government investigation until the eve… Continue Reading
By Nathan Lovett on Posted in “Claim”,Excess insurance/exhaustionThe United States District Court for the Northern District of Illinois, applying Illinois law, has held that a government-issued subpoena constituted a Claim under the directors and officers liability policies at issue, thus allowing a company’s coverage action to proceed against its primary and excess insurers. Astellas US Holding, Inc. v. Starr Indem. & Liab.… Continue Reading
By Hume Ross on Posted in “Claim”The Ohio Court of Appeals has affirmed that an insurer owed no duty to defend under an employment practices liability policy where a lawsuit was brought by employees of the insured who were also former partners and shareholders, and the suit was premised solely on the employees’ rights as former partners and shareholders. Orthopedic &… Continue Reading
By Danielle Barondess on Posted in “Claim”Applying Pennsylvania law, a federal district court has held that an insurer had no duty to defend or indemnify a judgment for excessive legal fees because a court-ordered letter predating the policy period and previewing objections to the insured law firm’s fees was a “claim” first made prior to the policy’s inception. Allied World Ins.… Continue Reading
By Jessica N. Gallinaro on Posted in “Claim”,Defense CostsThe United States Circuit Court of Appeals for the Ninth Circuit, applying California law, has held that an insurer owed no duty to reimburse the insured’s costs of responding to a governmental investigation. Millennium Labs., Inc. v. Allied World Assurance Co., Inc., 2018 WL 1179601 (9th Cir. Mar. 7, 2018). While the court held that… Continue Reading
By Nathan Lovett on Posted in “Claim”,Notice of ClaimThe United States District Court for the Southern District of Mississippi has held that notice of an underlying accident sent to the insured’s three insurance carriers represented a timely “claim” under the claims-made general liability policies at issue in light of the insurers’ course of conduct upon receipt of the notice. Jordan v. Maxfield &… Continue Reading
By Margaret Thomas on Posted in “Claim”,Notice of ClaimThe United States District Court for the Middle District of Florida has held that an errors and omissions policy does not provide coverage for a criminal investigation of an insured individual where the affidavit identifying the individual as a target of the investigation was not unsealed or reported to the insurer until after the policy’s… Continue Reading
By Jessica N. Gallinaro on Posted in “Claim”,Bad Faith,Prior Knowledge/Warranty ExclusionThe United States District Court for the District of New Mexico, applying New Mexico law, has held that an insurer owed no duty to defend a title and escrow agent against a demand by a title insurer because no civil proceeding had been brought against the insured. The court also held that the insured owed… Continue Reading
By Nathan Lovett on Posted in “Claim”An Iowa federal district court, in a case of first impression, has held that a medical record request did not constitute a “Claim” under a claims-made medical malpractice policy. Capson Physicians Ins. Co. v. Yates, 2017 WL 6997897 (S.D. Iowa Nov. 8, 2017).… Continue Reading
By Danielle Barondess on Posted in “Claim”,Wrongful ActApplying Texas law, a federal district court has held that a broadly-worded securities exclusion bars coverage of claims “incidental” to alleged misrepresentations made in connection with the sale of securities. Gleason v. Markel Am. Ins. Co., 2018 WL 538324 (E.D. Tex. Jan. 24, 2018). The court further held that an exception for claims involving transactions… Continue Reading
By Alexander Merritt on Posted in “Claim”,Wrongful ActThe U.S. District Court for the Eastern District of Pennsylvania, applying Pennsylvania law, has held that a former board member of a company is not entitled to coverage when the company was dismissed with prejudice from the underlying action. Palmer v. Twin City Fire Ins. Co., 2017 WL 5571051 (E.D. Pa. Nov. 20, 2017).… Continue Reading
By Ashley-Anne L. Criss on Posted in “Claim”The U.S. District Court for the Eastern District of Washington has held that a statutory notice of intent to sue letter received by an insured prior to a claims-made policy period did not constitute a “claim,” because it was not a “written demand for monetary, non-monetary or injunctive relief.” Tree Top, Inc. v. Starr Indem.… Continue Reading
By Ashley-Anne L. Criss on Posted in “Claim”In a win for Wiley Rein’s client, the U.S. District Court for the District of Colorado has held that a liability insurer had no duty to defend an Equal Employment Opportunity Commission (EEOC) charge and related lawsuit on the basis that a letter predating the charge and lawsuit was a “claim” first made prior to… Continue Reading
By Emily S. Hart on Posted in “Claim”,Notice of Claim,Prior Knowledge/Warranty ExclusionThe United States District Court for the District of Maryland has held that where notice of a potential claim is not reported during the first policy period and the insured knew about, but failed to disclose, the potential claim prior to the second policy period, coverage is precluded under both policies. James River Ins. Co.… Continue Reading
By Matthew W. Beato on Posted in “Claim”The United States Court of Appeals for the Tenth Circuit, applying Colorado law, has held that a formal investigative order issued by the U.S. Securities & Exchange Commission (“SEC”) and related subpoenas did not constitute “Claims” alleging “Wrongful Acts” as defined under a D&O policy. MusclePharm Corp. v. Liberty Ins. Underwriters, Inc., 2017 WL 4675701… Continue Reading
By Ashley-Anne L. Criss on Posted in “Claim”,Personal Profit/Advantage exclusionA New York state trial court, applying New York law, has held that a fee arrangement exclusion contained in a professional liability insurance policy precludes coverage for claims arising from an insured’s force-placed insurance business. QBE Americas, Inc. v. Ace Am. Ins. Co., 2017 WL 4122651 (Sup. Ct., N.Y. County Sept. 18, 2017). The court… Continue Reading
By Matthew W. Beato on Posted in “Claim”The United States District Court for the Southern District of New York has held that subpoenas and a formal investigative order issued by the U.S. Securities & Exchange Commission (“SEC”) constituted “Claims” as defined under a D&O policy. Patriarch Partners LLC v. AXIS Ins. Co., 2017 WL 4233078 (S.D.N.Y. Sept. 22, 2017).… Continue Reading
By Jessica N. Gallinaro on Posted in “Claim”The United States Court of Appeals for the Third Circuit, applying Pennsylvania law, has held that a single lawsuit alleging three causes of action and up to eight discrete wrongful acts constituted a single claim under a professional liability insurance policy. Westport Ins. Corp. v. Mylonas, 2017 WL 3327798 (3d Cir. Aug. 4, 2017).… Continue Reading
By Margaret Thomas on Posted in “Claim”,Notice of ClaimThe Appellate Court of Illinois, applying Illinois law, has held that an insurer has no duty to defend or indemnify an insurance agent under an errors and omissions liability policy where the agent failed to provide notice of the claim during the policy period in which the claim was first made. James River Ins. Co.… Continue Reading
By Ashley-Anne L. Criss on Posted in “Claim”,Related Claims and associated exclusionsThe United States District Court for the District of Colorado, applying Colorado law, has held that two lawsuits were connected by the “single scheme” of a contractor to interfere with a government contract for a surveillance camera system. Ciber, Inc. v. Ace Am. Ins. Co., 2017 WL 2537092 (D. Colo. June 9, 2017). The district… Continue Reading
By Matthew W. Beato on Posted in “Claim”,Notice of ClaimIn a significant victory for Wiley Rein’s client, a Tennessee federal court has held that an insured’s “general, boiler-plate . . . broad, [and] non-specific” notice that purported to give notice of a potential claim was untimely and insufficient to provide notice of an actual claim made during the policy period and omitted from the… Continue Reading
By Bonnie Thompson on Posted in “Claim”,Insured v. Insured Exclusion,Related Claims and associated exclusionsAn Illinois federal court, applying Illinois law, has held that an insurer who declined to advance defense costs was not estopped from asserting policy defenses in a coverage action later filed by the policyholder corporation. Vita Food Prods., Inc. v. Navigators Ins. Co., 2017 WL 2404981 (N.D. Ill. June 2, 2017). The court also held… Continue Reading
