The Supreme Court of Delaware has held that under Delaware law, the three-year statute of limitations period applicable to a statutory bad faith action governed by Louisiana law commences when the insured could plead a prima facie case and was therefore barred. Homeland Ins. Co. of New York v. Corvel Corp., 2018 WL 6061261 (Del.… Continue Reading
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Stockholder Demand Letter for Legal Expenses for Stockholder Dispute Constitutes Covered Claim for Wrongful Act
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
No Duty to Defend Under Claims-Made-and-Reported Policy Where Notice of Claim Given Nine Months After Cancellation
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
Mailroom Mix-Up Cannot Excuse Notice Requirement Noncompliance
Posted in Notice of ClaimThe United States Court of Appeals for the Eleventh Circuit, applying Georgia law, has held that mishandling of mail by an insured’s employee which led to noncompliance with a notice requirement in an insurance policy cannot, as a matter of law, excuse the noncompliance. Johnson & Bryan, Inc. v. Utica Mut. Ins. Co., 2018 WL… Continue Reading
Failure of Insured to Provide Timely Notice Under Claims-Made Policy Bars Suit Against Insurer of Bankrupt Insured
Posted in Bankruptcy, Notice of ClaimThe United States Court of Appeals for the Third Circuit, applying Pennsylvania law, has held that an insured’s failure to provide timely notice of a claim under a claims-made policy barred coverage for that suit. Frazier v. Exide Techs., No. 17-2399, 2018 WL 2727396 (3d Cir. June 6, 2018).… Continue Reading
Amended Complaint Raising Different Legal Theory Is Not a Claim First Made at Time of Initial Complaint
Posted in Notice of Claim, Related Claims and associated exclusionsThe Louisiana Court of Appeals has held that a claims-made policy affords coverage for a lawsuit filed before the policy period because an amended complaint alleging a new legal theory was filed during the policy period. Billeaudeau v. Opelousas Gen. Hosp. Auth., 2018 WL 1835510 (La. Ct. App. Apr. 18, 2018). The court also rejected… Continue Reading
No Coverage Under Claims Made and Reported Policy for Claim Reported After Policy Expiration
Posted in Notice of ClaimA Virginia federal court, applying Virginia law, has held that an insurer was entitled to summary judgment that no coverage was available under its claims made and reported policy for a claim noticed to it after the policy expired. Gateway Residences at Exch., LLC v. Illinois Union Ins. Co., 2018 WL 1629107 (E.D. Va. Apr.… Continue Reading
No Coverage for Underlying Lawsuits Due to Insured’s Failure to Provide Notice as Soon as Practicable
Posted in Notice of ClaimThe United States District Court for the Northern District of Georgia, applying Georgia law, has held that there is no coverage for multiple lawsuits under employment practices liability insurance policies where the insured failed to comply with the policies’ notice requirements. Nat’l Cas. Co. v. Fulton Cnty., Ga., 2018 WL 1523089 (N.D. Ga. Mar. 28,… Continue Reading
Notice of Accident Constitutes Timely “Claim” Based on Insurers’ Conduct
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
No Coverage for Criminal Investigation Where Sealed Affidavit Identifying Insured as Target of Investigation Was Not Reported During Policy Period
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
Lawsuit Filed by Company Against Former Officer Does Not Trigger Employment Practices Liability Coverage
Posted in Defense Costs, Notice of Claim, Wrongful ActThe United States District Court for the District of Oklahoma has held that a lawsuit filed by a company against its former president did not implicate its policy’s Employment Practices Liability coverage because the lawsuit was not filed by or on behalf of an employee, as required by the policy. Statton v. Allied World Specialty… Continue Reading
Insured’s Late Notice of Original Discrimination Charges Bars Coverage for Related Lawsuits
Posted in Notice of ClaimIn a win for Wiley Rein’s client, the United States District Court for the Eastern District of North Carolina, applying North Carolina law, has held that an insurer owed no coverage for two underlying lawsuits because the insured failed to provide notice of the EEOC charges of discrimination that arose from the same facts at… Continue Reading
No Coverage Available Where Insured Fails to Provide Notice of Potential Claim During First Policy Period and Knew About, But Failed to Disclose, Potential Claim Prior to Second Policy Period
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
Court Declines to Hold Broker Accountable for Insured’s Failure to Report Known Claims in Application
Posted in Notice of ClaimA Massachusetts federal court has held that, absent special circumstances, an insurance broker does not owe a fiduciary duty of care to its client and therefore is entitled to accept its clients’ representation that all known claims had been reported in its application and has no duty to investigate whether potential claims were not reported. … Continue Reading
No Coverage For Claims Interrelated with Prior Improperly-Noticed Claim
Posted in Notice of Claim, Related Claims and associated exclusionsA federal district court, applying Texas law, has held that an insured is not entitled to coverage for subsequent related claims when the insured gave late notice of the first claim. ADI Worldlink, LLC v. RSUI Indem. Co., 2017 WL 4112112 (E.D. Tex. Sept. 18, 2017).… Continue Reading
Coverage Barred for Claim Made During Initial Policy Period and Reported in Renewal Period
Posted in Notice of ClaimThe Ninth Circuit, applying Alaska law, has held that coverage was not afforded under a company’s professional errors and omissions insurance policy for a claim made against the company during the policy period but not reported until the renewal policy period. Alaska Interstate Constr., LLC v. Crum & Forster Specialty Ins. Co., 2017 WL 3601728… Continue Reading
No Coverage for $3.5 Million in Pre-Notice Defense Expenses Where Notice Was a Year Late
Posted in Consent to settle/incur defense costs, Defense Costs, Notice of ClaimApplying Delaware law, a federal court in New York has held that where an insured waited more than a year to report a lawsuit to its insurer and during that period incurred more $3.5 million in legal fees, the insurer had no obligation to pay pre-tender defense costs, without regard to whether the insurer could… Continue Reading
No Coverage Where Claim Reported After Extended Reporting Period
Posted in Notice of ClaimA Wisconsin intermediate appellate court has held that coverage was unavailable for a claim reported after the termination date of an extended reporting period purchased by the policyholder. Sheffield v. Darwin Nat. Assur. Co., 2017 WL 3149792 (Wisc. Ct. App. July 25, 2017). … Continue Reading
Insurer Need Not Demonstrate Prejudice from Late Notice Under Claims Made and Reported Policy
Posted in Notice of ClaimThe United States Court of Appeals for the Sixth Circuit, applying Ohio law, has held that an insurer does not need to show prejudice resulting from late notice under a claims made and reported policy in order to deny coverage. McCarty v. Nat’l Union Fire Ins. Co. of Pittsburgh, Pa, 2017 WL 2781561 (6th Cir.… Continue Reading
No E&O Coverage Where Insured Failed to Report Claim During Policy Period When It Was First Made
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
“Non-Specific,” “Boiler-Plate” Notice of Potential Claim Insufficient as a Matter of Law
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
Eighth Circuit Affirms That Notice Given During Policy Period but Seven Months After Complaint Filed is Not “As Soon As Practicable”
Posted in Notice of ClaimThe United States Court of Appeals for the Eighth Circuit, applying Minnesota law, has affirmed summary judgment in favor of an insurer, holding that the condition precedent of timely notice “as soon as practicable” was not met where the insured provided notice of a lawsuit seven months after the lawsuit was filed without offering any… Continue Reading
Notice-Prejudice Rule Applies to Claims-Made Policy
Posted in Notice of ClaimApplying the notice-prejudice rule to a claims-made policy, the United States District Court for the District of Colorado has held that there is defense and indemnity coverage for the medical malpractice case filed against its hospital insured because, while notice of the malpractice suit was not given “as soon as practicable,” the insurer had not… Continue Reading
Insured’s Failure to Provide Notice of Demand Letter Precludes Coverage for Related Lawsuit Noticed in Subsequent Policy Period
Posted in “Claim”, Notice of Claim, Related Claims and associated exclusionsA Washington federal court has held that an insured’s failure to provide notice of a demand letter to its insurer during the policy period in which the letter was received precludes coverage under a claims-made and reported policy for a related lawsuit filed during a subsequent policy period. National Union Fire Ins. Co. v. Zillow,… Continue Reading