The United States District Court for the District of Colorado, applying Colorado law, has held that a professional liability insurer was not obligated to defend an attorney accused of discovery misconduct. The court ruled that an order requiring the attorney to show cause why he should not be sanctioned did not seek Damages, as defined in the policy, and fell within an exclusion for claims seeking payment of legal fees and costs. Godin & Baity, LLC v. Markel Ins. Co., Inc., 2020 WL 5076764 (D. Colo. Aug. 27, 2020). The court also addressed and rejected the insured’s “reasonable expectations” argument, as the facts did not satisfy either of the two conditions under which Colorado law recognizes the doctrine.
Continue Reading Sanctions Carve-Out Bars Coverage for Show Cause Order Issued to Attorney
