Related/Interrelated Claims or Wrongful Acts

The United States District Court for the Western District of Washington, applying Washington law, has held that an insured’s late notice of a claim bars coverage, rejecting arguments that (i) coverage applied because the prior and pending litigation provision did not exclude coverage, (ii) the insurer could not relate a claim back to a prior claim to bar coverage, and (iii) the notice-prejudice rule applied. Faithlife Corp. v. Phila. Indem. Ins. Co., 2020 WL 7385722 (W.D. Wash. Dec. 16, 2020).
Continue Reading No Coverage for Employment Lawsuit Where Insured Failed to Notice Earlier EEOC Charges

The United States District Court for the District of Connecticut, applying Connecticut law, has found no coverage under a director and officers liability policy for a claim alleging the fraudulent conveyance of a company because it was “related to” a claim challenging the conveyance made prior to the policy period.  See Alexbay LLC v. QBE Ins. Corp., 2020 WL 5501233 (D. Conn. Sept. 11, 2020).  The court declined to decide whether a specific litigation exclusion also barred coverage.

Continue Reading D&O Claim Deemed Related to Prior Suit Brought by Different Parties