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Insurance Litigation Breach of Duty

Wiley Rein LLP

Applying a “Meaningful Linkage” Standard, Delaware Superior Court Concludes Two Lawsuits Do Not “Arise Out Of” Interrelated...

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The Delaware Superior Court has held that an underlying shareholder lawsuit and prior litigation alleging certain common facts did not arise out of Interrelated Wrongful Acts, and did not trigger either the Prior Notice or...more

McGinnis Lochridge

Insurance Producer Exposure When Procuring Cover for Sophisticated Clients

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Generally speaking, insurance producers face fairly routine obligations when procuring cover. Every state imposes a general duty to exercise that degree of care, skill and diligence a reasonable producer would exhibit to his...more

Wiley Rein LLP

Ninth Circuit Affirms Ruling That Section 533 Bars Coverage for Defense Costs and Indemnity When Claims Broadly Allege Willful...

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The United States Court of Appeals for the Ninth Circuit, applying California law, has affirmed a district court’s determination that California Insurance Code § 533 barred indemnity and defense costs coverage for a lawsuit...more

Zelle  LLP

How to Be a Reasonably Prudent Insurer Under the Stowers Doctrine, Part II

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There are a number of factors that Courts review when determining whether an insurer has acted under a “reasonably prudent insurer” standard under the Stowers doctrine. We have previously discussed key issues to look out for...more

Wiley Rein LLP

Emotional Distress Damages Without Physical Injury Insufficient to Support Direct Claim Against Insurer Under California Statute

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The United States District Court for the Eastern District of California, applying California law, has held that without physical injury, emotional distress damages alone are insufficient to establish standing for a direct...more

Zelle  LLP

Federal Court Correctly Concludes that a Simple Disagreement Between Experts Does Not Support a Claim for the Breach of the Duty...

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U.S. District Court Xavier Rodriguez of the United States District Court for the Western District of Texas recently issued a decision granting summary judgment for an insurance carrier in a first-party case involving alleged...more

Rivkin Radler LLP

December 2024 Insurance Update

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There’s been plenty of litigation over whether construction defect claims qualify for coverage under a CGL policy. This month, we discuss two federal circuit court rulings (First and Seventh Circuits) that reach opposite...more

Allen Matkins

Is Your Directors And Officers Liability Coverage Illusory?

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Many corporations pay significant amounts for directors and officers liability policies.  Commonly referred to as D&O policies, these policies usually involve three sides.  Directors and officers are likely to have the most...more

Pillsbury - Policyholder Pulse blog

Narrowing the Professional Services Exclusion: Policyholder Lessons “Arising Out of” Practice Fusion v. Freedom Specialty...

A recent decision by a California appellate court in Practice Fusion, Inc. v. Freedom Specialty Insurance Company, denying the policyholder more than $118 million in Directors & Officers liability coverage based on an...more

Cozen O'Connor

Louisiana Court Finds That an Insured Breached its Duty to Cooperate

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The recent decision of Marcantel v. State Farm Fire, No. 2:22-CV-01511, 2024 U.S. Dist. LEXIS 111077 (W.D. La. June 24, 2024) offers valuable lessons for policyholders regarding the importance of cooperation in the insurance...more

Rivkin Radler LLP

New York Insurance Coverage Law Update - January 2024

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Second Circuit Holds That Malpractice Insurer Has No Duty to Defend or to Indemnify Lawyer Because Of Business Enterprise Exclusion- Associated Industries Insurance Company sued its insureds, a lawyer, and his former law...more

Wiley Rein LLP

Insurers Owe Coverage for Settlement Despite Bump-Up Provision

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Applying Delaware law, the Superior Court of the State of Delaware has held that a bump up provision did not bar coverage of a settlement that resolved claims asserting breaches of fiduciary duty. On December 4, 2019, the...more

Rivkin Radler LLP

Insurance Update - August 2023

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Mental state, in some form, is the common theme running through our first three cases this month. The Fifth Circuit decides whether directors and officers of an ice cream company, accused of breaching their fiduciary...more

Saul Ewing LLP

The Friday Five: Five ERISA Litigation Highlights - August 2023

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This month’s Friday Five addresses two cases involving disability claims that touch on Covid-19, a Circuit Court ruling for an insurer, a district court ruling that a 20-year-old regulatory settlement precluded an insurer...more

Morris James LLP

Delaware Supreme Court Affirms Delaware Choice-of-Law Ruling In Dismissal of D&O Liability Insurance Coverage Dispute

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Stillwater Mining Company v. National Union Fire Insurance Company of Pittsburgh, PA et al., No. 24, 2022 (Del. Jan. 12, 2023) - This decision from Delaware Supreme Court addresses choice-of-law questions for D&O insurance...more

Nutter McClennen & Fish LLP

Massachusetts Judge’s Decision Underscores Importance of Segregating Fees Attributable to Work Performed on Successful Chapter 93A...

Where a party prevails on a Chapter 93A claim, the party should submit a fee application that segregates the fees for the work necessary to prevail on the Chapter 93A claim. That’s the key takeaway from Commonwealth Insurance...more

Rivkin Radler LLP

Insurance Update - January 24, 2023

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It was a busy end to the year, as courts handed down several key insurance decisions before ringing in 2023. The Ohio Supreme Court considered the contours of “direct physical loss or damage” in two separate decisions –...more

Rivkin Radler LLP

The Title Reporter — Winter 2023

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Here is what we cover in this issue of The Title Reporter: A Legal Update for the Title Insurance Industry •A federal district court in New York granted summary judgment in favor of a title insurance company and its...more

Wiley Rein LLP

Lawsuit Deemed Related to Notice of Circumstances Submitted During Prior Claims-Made Policy Period Under Florida’s “Sufficient...

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The United States District Court for the Western District of Louisiana, applying Florida law, has held that an investor’s lawsuit against an attorney related back to a notice of a potential claim submitted during the earlier...more

Wiley Rein LLP

Insurer’s Declaratory Judgment Complaint Plausibly Alleges Violation of Cooperation Clause at Motion to Dismiss Phase

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The United States District Court for the Northern District of Illinois, applying Illinois law, has held that an insurer’s complaint plausibly alleged that the insured had breached the terms of the policy’s cooperation clause....more

Wiley Rein LLP

Duty to Defend Where Complaint Contains Potentially Covered Allegations

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The United States District Court for the Southern District of Florida, applying Florida law, has determined that two lawyers professional liability insurers had a duty to defend where the underlying complaint included at...more

Jaburg Wilk

An Inadequate Investigation Exposes Arizona Insurers to Bad Faith Only If the Insured Proves Additional Investigation Would Have...

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Plaintiffs often allege an insurer breached the duty of good faith and fair dealing by conducting an unreasonable and/or an inadequate investigation. But, Arizona courts have held for over 30 years that an insurer’s...more

Wiley Rein LLP

Insured Barred From Settling Without Insurer’s Consent Absent Breach of Duty to Defend But Insurer Must Exercise Good Faith in...

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The United States District Court for the District of South Dakota, applying South Dakota law, has held that an insured healthcare system was barred from settling without its healthcare liability insurer’s consent where the...more

Wiley Rein LLP

Lawyer’s Professional Liability Insurer has Duty to Defend Suit Alleging Sexual Assault of Client

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Applying Maine law, the United States District Court for the District of Maine has held that a legal professional liability insurer had a duty to defend an insured attorney against a suit alleging sexual assault of a client,...more

Cooley LLP

Fair Presentation, Moral Hazard and Material Circumstances

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In the recent decision in Berkshire Assets (West London) Ltd v AXA Insurance UK Plc [2021] EWHC 2689 (Comm), Lionel Persey QC, sitting as a Judge of the High Court, gave the first English decision on the insured’s duty of...more

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