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Pre-Policy Email Does Not Constitute a Claim

The United States District Court for the Southern District of California, applying California law, has held that an email issued to an insured homeowners association (“HOA”) before the inception of the relevant claims-made...more

No Prejudice Required for Late Notice Under Claims-Made E&O Policy

The United States District Court for the Southern District of New York, applying Michigan law, has held that a claims-made E&O policy does not afford coverage where the insured failed to comply with a condition precedent to...more

No E&O Coverage for Settlement of Illinois State Governmental Investigation

The United States District Court for the Northern District of Illinois, applying Illinois law, has held that an E&O policy does not afford coverage for a settlement with two government agencies, including the payment of fines...more

No Coverage for Breach of Contract under Professional Liability Policy

The United States District Court for the District of Minnesota, applying Minnesota law, has held that a law firm’s professional liability policy does not provide coverage for the firm’s alleged breach of various litigation...more

No Coverage for Claims arising from Billing Practices under Professional Liability Policy

The United States District Court for the Middle District of Florida, applying Florida law, has held that a law firm was not entitled to coverage under a professional liability policy for claims involving its allegedly...more

No Coverage for SEC Investigation of Insured Company

The Superior Court of Delaware has held that collateral estoppel bars an insured company from relitigating whether, under a second excess follow-form D&O policy, an SEC letter and order (collectively the “SEC Matter”)...more

Lawsuit not a “Related Claim” to Earlier Demand Letter, but Policy Rescinded Based on Material Misrepresentations in Application

The United States District Court for the Middle District of Florida has held that an insurer was entitled to rescind a professional liability insurance company where the insured architecture firm made multiple material...more

No Coverage for Claim Involving New Defendants and Alleging New Wrongful Acts Where Claim Relates Back to Earlier Policy Period

The United States District Court for the Southern District of Florida, applying Florida law, has held that a D&O policy did not cover a claim against directors because the claim related back to an earlier policy period, even...more

Insurer Entitled to Recoup Defense Costs Absent Express Policy Provision

The United States District Court for the Eastern District of Michigan, applying Michigan law, has held that, even absent an express policy provision regarding recoupment, an insurer was entitled to recoup defense costs after...more

Settlement of Merger Objection Litigation is Not Covered “Loss”

In a win for Wiley’s client, a California trial court has determined that a pharmaceutical company’s D&O policies did not cover its settlement of shareholder litigation alleging that the price another company paid to acquire...more

Defense Costs Presumed Reasonable if Insurer Breaches Duty to Defend

The United States Court of Appeals for the Seventh Circuit has held that, under Indiana law, when a liability insurer breaches its duty to defend, the defense costs that the insured incurs in the underlying matter are...more

Failure to Plead Compliance with Condition Precedent Held Fatal to Declaratory Judgment Action

The United States District Court for the Southern District of New York has held that a declaratory judgment action filed against an excess difference in conditions (“DIC”) insurer is ripe for adjudication because the insured...more

Commercial Crime Policy Covers Loss Involving Fraudulent Email Directing Employee to Make Payments

The United States Court of Appeals for the Ninth Circuit, applying California law, has held that a loss resulting from an employee’s payments made to a third party after receiving fraudulent emails directing her to wire funds...more

Policy Requires Allocation of Defense Costs Based Upon Parties’ Relative Legal Exposure

The United States District Court for the Central District of Illinois has held that an insurance policy requires allocation of defense costs based on the parties’ relative legal exposure if it clearly and unequivocally...more

No Showing of “Appreciable Prejudice” Required Because Insured Violated Consent to Settle Provision

The United States Court of Appeals for the Third Circuit, applying New Jersey law, has held that an insurer can deny coverage under a claims-made policy, without demonstrating “appreciable prejudice,” if the insured fails to...more

No Coverage under EPL Policy for “Wrongful Act” Committed Against Non-Employee

The Superior Court of Pennsylvania has held that two patients’ lawsuit against their therapist alleging various misdeeds did not involve a “Wrongful Act” under an EPL policy because the patients are not employees of the...more

Wrongful Acts Alleged in Class Action Based on Corporate Policy Are Not “Related Acts”

The United States District Court for the Southern District of New York has held that an insurer has a duty to defend its insured’s subsidiary in a class action lawsuit that alleges wrongful conduct that occurred prior to the...more

Insurer Has Duty to Defend Suits Seeking Only Declaratory and Injunctive Relief

An Illinois appellate court has held that a professional liability insurer has a duty to defend suits seeking only declaratory and injunctive relief, even though the suits did not allege potentially covered damages.  MHM...more

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