The U.S. Court of Appeals for the Third Circuit, applying California and Virginia law, has found that wrongful acts alleged in two ERISA class actions comprising different class periods are causally and logically related.  Northrop Grumman Corp. v. AXIS Reinsurance Co., 2020 WL 1933264 (3rd Cir. Apr. 22, 2020).

Continue Reading Class Actions Comprising Different Class Periods Causally and Logically Related

The Fourth Circuit, applying Virginia law, has held that a negligent supervision exclusion in a lawyers’ professional liability policy bars coverage for a lawyer’s mismanagement of trust assets when acting as a trustee.  ALPS Prop. & Cas. Ins. Co. v. Higgerson, 2020 WL 1487836 (4th Cir. Mar. 24, 2020).

Continue Reading Negligent Services Exclusion Bars Coverage for Lawyer’s Actions as Trustee

Applying Virginia law, the United States Court of Appeals for the Fourth Circuit has held that a Virginia statute imposing a forty-five day deadline for a coverage denial based on an insured’s breach of a liability policy does not apply to a denial based on a claim reported outside the policy period under a claims made and reported policy.  See Gateway Residences at Exchange, LLC v. Illinois Union Ins. Co., 2019 WL 963238 (4th Cir. Feb. 28, 2019).

Continue Reading Fourth Circuit Holds Virginia Statute Imposing Deadline to Deny Coverage Does Not Apply to Claim Reported Outside Policy Period

Applying California and Virginia law, a federal district court has held that two class action lawsuits alleging similar wrongful conduct, but brought by different classes for different class periods, were nonetheless related and constituted a single claim.  Northrop Grumman Corp. v. AXIS Reinsurance Co., 2018 WL 5314918 (D. Del. Oct. 26, 2018).

Continue Reading Two Class Action Lawsuits Are “Related,” Despite Different Plaintiffs and Different Time Periods

The United States District Court for the Eastern District of Virginia, applying Virginia law, has held that a professional liability policy’s exclusion for “negligent supervision” of funds applied to bar coverage for damages resulting from an insured attorney’s reckless investment of trust assets.  ALPS Prop. & Cas. Ins. Co. v. Farthing, 2018 WL 4927366 (E.D. Va. Sept. 26, 2018).  The court also held that the insurer was entitled to recoup defense costs paid in the underlying suit.

Continue Reading Negligent Supervision of Funds Exclusion Bars Coverage for Trust Investment Losses

Applying Virginia law, the United States District Court for the Western District of Virginia has held that an educators professional liability insurance policy did not afford coverage for a lawsuit against an insured school teacher accused of sexually abusing a student.  Horace Mann Ins. Co. v. Barney, 2018 WL 1733989 (W.D. Va. Apr. 10, 2018).  Specifically, the court held that the allegations of sexual abuse — despite occurring in part on school premises – did not constitute “educational employment activities” necessary to trigger coverage.

Continue Reading Alleged Sexual Abuse by Teacher Not Covered as “Educational Employment Activities”

A 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. 3, 2018).

Continue Reading No Coverage Under Claims Made and Reported Policy for Claim Reported After Policy Expiration

The United States District Court for the Eastern District of Virginia, applying Virginia law, has held that a hotel’s former maintenance worker was not an “employee” as defined by a business insurance policy, thereby precluding coverage for loss resulting from the worker’s theft.   GRM Mgmt., LLC v. Cincinnati Ins. Co., 2017 WL 1712520 (E.D. Va. May 1, 2017).

Continue Reading Court Finds Hotel Worker Not “Employee” Under Policy for Theft Loss Coverage

The United States District Court for the Eastern District of Virginia, applying Virginia law, has held that a lawyer’s professional liability insurer’s liability was limited because the underlying action arose out of acts, errors, or omissions occurring on or before a prior acts date specified in the policy. Minnesota Lawyers Mut. Ins. Co. v. Protostorm, LLC, 2016 WL 3447892 (E.D.Va. June 22, 2016).
Continue Reading Prior Acts Date Limits Insurer’s Liability for Underlying Judgment