Executive Summary Blog

Executive Summary Blog

Legal developments affecting professional liability insurers

Tag Archives: Maryland

No EPL or D&O Coverage for Intra-Corporate Shareholder Dispute

Posted in “Claim”, Wrongful Act
In a win for an insurer represented by Wiley Rein, the United States District Court for the District of Maryland has held that an intra-corporate dispute between shareholders was not covered under an EPL insuring agreement because the underlying demand letter and complaint did not state a claim “for” an Employment Practices Wrongful Act, and… Continue Reading

Prior Knowledge Exclusion in Application Bars Coverage for Undisclosed Claim that Led to Litigation

Posted in Prior Knowledge/Warranty Exclusion
In a win for Wiley Rein’s client, a Maryland federal district court has ruled that a prior knowledge exclusion contained in a policy application barred coverage for a lawsuit filed during the policy period because it arose from a demand letter received by the insured before the application was completed.  Madison Mechanical, Inc. v. Twin… 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 Exclusion
The 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

Insured’s Claims Barred by Res Judicata

Posted in Related Claims and associated exclusions
Applying Maryland law, a federal district court has held that the doctrine of res judicata barred an insured’s claims for coverage under a particular policy, where the insured’s previous efforts to bring those claims in a different proceeding and concerning a different policy failed.  The Humane Society of the United States v. Nat’l Union Fire… Continue Reading

Federal Liability Risk Retention Act Preempts Maryland’s Notice-Prejudice Statute for Non-Chartered Risk Retention Group

Posted in Notice of Claim
A Maryland federal court has held that the federal Liability Risk Retention Act (LRRA) preempts Md. Ins. Code § 19-110, Maryland’s notice prejudice statute, in circumstances where Maryland law otherwise would govern a contract issued by a non-chartered insurer.  Mora v. Lancet Indem. Risk Retention Grp., Inc., 2017 WL 818718 (D. Md. Mar. 1, 2017).… Continue Reading

Prior Acts Exclusion Bars Coverage for Suits Alleging Wrongful Conduct Spanning Prior Acts Date

Posted in Exclusions, Related Claims and associated exclusions
A Maryland intermediate appellate court has affirmed summary judgment in favor of an insurer, holding that a Prior Acts Exclusion applied to bar coverage for two antitrust lawsuits where the suits alleged that the insured conspired to raise prices beginning as early as 2002 and the Prior Acts Exclusion barred coverage for “Interrelated Wrongful Acts,… Continue Reading

Temp Nurse Deemed an “Employee” Under Hospital Insurance Policy Despite Staffing Agreement Stating Otherwise

Posted in Other Insurance
The United States Court of Appeals for the Fourth Circuit has held that, under Maryland law, a nurse placed by a staffing agency to work at a hospital qualifies as a hospital “employee” under the hospital’s insurance policy despite a separate contract describing the nurse as an employee of the agency, not the hospital. Interstate… Continue Reading

Fourth Circuit Upholds Summary Judgment for Insurer Based on Late Notice Because Insurer Suffered Actual Prejudice Due to Default Judgment

Posted in Notice of Claim
The United States Court of Appeals for the Fourth Circuit, applying Maryland law, has affirmed the entry of summary judgment in favor of an insurer where it received late notice of a suit in which the underlying court had entered default judgment against the insured, finding that the insurer was actually prejudiced by the delay.… Continue Reading

No “Wrongful Act” Where Claim Did Not Involve Conduct “Solely” in Individual’s Capacity as a Director or Officer of an Insured Entity

Posted in Wrongful Act
A Maryland intermediate appellate court has ruled that a claim did not allege a “wrongful act” because the claim was not made against an individual “solely” in his capacity as a director or officer of an insured entity. Feldman v. Fidelity & Deposit Co. of Md., 2016 WL 885041 (Md. Ct. Spec. App. Mar. 7,… Continue Reading