By Edward R. Brown on Posted in Loss,Professional ServicesA New York federal district court, applying New York law, has held that the sending of unsolicited text message advertisements in violation of the Telephone Consumer Protection Act (TCPA) triggered professional services coverage under a Miscellaneous Professional Liability (MPL) policy. Illinois Union Ins. Co. v. US Bus Charter & Limo, Inc., 2018 WL 1193464 (E.D.N.Y.… Continue Reading
By Ashley-Anne L. Criss on Posted in Professional Services,Wrongful ActThe United States District Court for the District of New Jersey has held that an exclusion in a professional liability policy applicable to claims arising out of the failure to effect or maintain any insurance precludes coverage for defense costs incurred in an action against an insured on the basis that the action arose out… Continue Reading
By Emily S. Hart on Posted in Dishonesty Exclusion,Prior Knowledge/Warranty Exclusion,Professional ServicesThe United States District Court for the District of New Jersey has held that allegations that a lawyer and his law firm engaged in a fraudulent insurance scheme to induce payment of personal injury protection benefits while representing clients constituted “Professional Legal Services” under the firm’s professional liability policy, triggering the duty to defend. Arzadi… Continue Reading
By Hume Ross on Posted in Professional ServicesThe Illinois Intermediate Appellate Court, applying Iowa law, has affirmed that a professional liability insurer must provide a defense for an attorney who allegedly mishandled funds that he was holding in escrow related to the plaintiff’s transaction with another company for which the attorney was vice president and legal counsel. Willey v. Minn. Lawyers Mutual… Continue Reading
By Margaret Thomas on Posted in Exclusion lead-in language (Arising out of),Professional ServicesA California appellate court has held that a pipeline owner’s insurer is not entitled to reimbursement of defense costs and settlement payments from the insurer for the staffing agency that supplied personnel to the pipeline because the professional services exclusion in the staffing agency’s policy unambiguously barred coverage. Energy Ins. Mut. Ltd. v. ACE American… Continue Reading
By Nicole Audet Richardson on Posted in Professional ServicesThe United States Court of Appeals for the Eleventh Circuit has affirmed the dismissal of a breach of contract and bad faith case against two insurers based on the policies’ professional services exclusion, finding that the exclusion clearly created joint, not several, obligations. Stettin v. National Union Fire Ins. Co. of Pittsburgh, Pa., 2017 WL… Continue Reading
By Emily S. Hart on Posted in Dishonesty Exclusion,Personal Profit/Advantage exclusion,Professional ServicesApplying Colorado law, the United States District Court for the District of Colorado has held that allegations of collusion to fix wages in violation of the Sherman Antitrust Act do not fall within the scope of professional liability coverage for “counseling” services because “counseling” does not include an alleged agreement to fix wages. Colony Ins.… Continue Reading
By Laura Lee Miller on Posted in Prior Knowledge/Warranty Exclusion,Professional ServicesThe United States District Court for the Northern District of Ohio, applying Ohio law, has granted summary judgment in favor of an insurer, holding that an insured attorney could reasonably have expected a claim where he received a letter addressed to multiple parties indicating that the attorney’s former client was represented by new counsel, who… Continue Reading
By Leland H. Jones, IV on Posted in Professional ServicesIn a win for Wiley Rein’s client, the United States Court of Appeals for the Ninth Circuit, applying Arizona law, has held no indemnity coverage was available under an accountants E&O policy because the insured was not providing “professional services” when soliciting an investment in an entity in which the accountant held a personal stake.… Continue Reading
By Matthew W. Beato on Posted in Professional ServicesApplying Illinois law, the United States Court of Appeals for the Seventh Circuit has held that a lawsuit that mentioned that the insured provided professional services to the claimant, but did not directly assert that any of the wrongdoing in the complaint arose from those services, was not a covered claim under a real estate… Continue Reading
By Alexander Merritt on Posted in Professional ServicesThe Supreme Court of Utah has affirmed summary judgment in favor of an insurer, holding that language regarding the scope of coverage under a real estate brokerage company’s insurance policy encompassed only services performed for compensation through a traditional real estate commission. Compton v. Houston Cas. Co., 2017 WL 1101816 (Utah Mar. 23, 2017).… Continue Reading
By Laura Lee Miller on Posted in Professional ServicesThe United States District Court for the District of Connecticut, applying Connecticut law, has granted summary judgment in favor of an insured, holding that an underlying complaint alleged at least one act that could “possibly” fall within the policy’s definition of “wrongful acts,” triggering a duty to defend. Fernandez v. Zurich Am. Ins. Co., 2017… Continue Reading
By Stewart Day on Posted in Professional ServicesThe United States District Court for the Northern District of California, applying California law, has held that a professional services exclusion bars coverage under a directors and officers liability policy for an online education program servicer against an action under the False Claims Act, holding that the False Claims Act allegations at issue arose out… Continue Reading
By Stewart Day on Posted in Professional Services,Wrongful ActThe United States Court of Appeals for the Sixth Circuit, applying Michigan law, has held that an insured securities broker-dealer’s failure to bring legal proceedings within the 24-month period specified by its financial institution fidelity bond precluded coverage for losses resulting from an employee’s embezzlement scheme. Hantz Fin. Servs., Inc. v. Am. Int’l Specialty Lines… Continue Reading
By Leland H. Jones, IV on Posted in Professional ServicesIn a win for an insurer represented by Wiley Rein, the United States Court of Appeals for the Fifth Circuit, applying Louisiana law, has held that a lawyers professional liability policy afforded no coverage for a suit alleging no act or omission by the insured in providing legal services. Edwards v. Continental Cas. Co., 2016… Continue Reading
By Karen L. Toto on Posted in Professional Services,Reasonable expectationsApplying New Jersey law, a federal district court has held that a law firm’s professional liability policy does not provide coverage for an employee’s misappropriation of client funds. Cadre v. ProAssurance Cas. Co., 2016 WL 3844208 (D.N.J. July 14, 2016).… Continue Reading
By Jessica N. Gallinaro on Posted in Professional ServicesApplying New York law, the United States District Court for the Southern District of New York has held that a D&O insurer was not obligated to indemnify the insured or the insured’s E&O carrier because the D&O policy’s professional services exclusion applied. Beazley Ins. Co., Inc. v. ACE American Ins. Co., No. 15-cv-5119 (S.D.N.Y. Jul.… Continue Reading
By Edward R. Brown on Posted in Professional ServicesThe Supreme Court of Wisconsin has held that a professional liability policy issued to an insured for his conduct as a trustee of two trusts afforded no coverage for a series of claims arising out of the trustee’s alleged conduct as a director or officer of businesses owned by the trusts. Marks v. Houston Cas.… Continue Reading
By Bonnie Thompson on Posted in Breach of Contract,Professional ServicesA New Jersey intermediate court of appeals has vacated and remanded a case in which the trial court held that an insurer had no duty to defend based on a breach of contract exclusion, because the appellate court could not determine whether the exclusion applied without a choice of law analysis. Pharmacy & Healthcare Commc’ns,… Continue Reading
By Nicole Audet Richardson on Posted in Professional ServicesApplying Massachusetts law, the United States Court of Appeals for the First Circuit has held that unfair business practices claims brought against an insured insurance broker by a competitor involved professional services within the scope of its professional liability policy and that an exclusion for “unfair competition of any type” did not apply because the… Continue Reading
By Margaret Thomas on Posted in “Claim”,Breach of Contract,Defense Costs,Professional ServicesThe United States District Court for the Northern District of California, applying California law, has held that neither a breach of contract exclusion nor the implied willful acts exclusion provided for by California Insurance Code § 533 precluded an insurer’s duty to defend a lawsuit brought against its insured by one of its competitors for… Continue Reading
By Margaret Thomas on Posted in Professional ServicesThe United States Court of Appeals for the Ninth Circuit, in an unpublished opinion applying California law, has held that there is no coverage under a D&O liability policy for claims alleging misrepresentations in offering documents for mortgage-backed securities because the mortgage-backed securities did not constitute “securities of an Organization.” Impac Mortgage Holdings Inc., v.… Continue Reading
By Matthew W. Beato on Posted in Professional ServicesThe United States Court of Appeals for the Eleventh Circuit, applying Georgia law, has held that an advancement made by a bank similar to that made in connection with overdraft protection was not a “loan” within the meaning of a definition of “Lending Services” in a bankers’ professional liability policy. Greater Community Bancshares, Inc. v.… Continue Reading
