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Wiley Rein LLP

California Court of Appeal Affirms Dismissal of Claims against Excess Insurers for Insureds’ Failure to Allege Exhaustion

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The California Court of Appeal, applying California law, has affirmed a trial court’s decision dismissing claims with prejudice against two excess carriers for the insureds’ failure to allege exhaustion of the underlying...more

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Georgia Federal Court Determines State Court Judgment Entered After Parties Executed a General Release Is Not “Loss”

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The United States District Court for the Middle District of Georgia, applying Georgia law, has held that an insurer had no obligation to pay a judgment against its insured in an underlying personal injury lawsuit because the...more

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Contractual Liability Exclusion Bars Coverage Where Lawsuit Against Insured Arises Out of a Contractual Obligation

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The Appellate Court of Maryland, applying Maryland law, has held that an insurer had no duty to defend or indemnify an insured under a professional liability policy containing a contractual liability exclusion for a lawsuit...more

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No Coverage for Malpractice Suit Where Insured Misrepresented Prior Knowledge of Potential Claim

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A Connecticut state court has held that an insurer owes no coverage to an insured law firm that misrepresented its prior knowledge of a potential malpractice claim to be filed by a former client. Evans & Lewis, LLC v. Nat’l...more

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Prior Knowledge Provision Precludes Coverage for Known Sexual Assault Under Either an Objective or Subjective Standard

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The Superior Court of New Jersey, Appellate Division, applying New Jersey law, has held that a professional liability policy afforded no coverage for a lawsuit alleging sexual misconduct because the insured had knowledge of...more

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Business Enterprise Exclusion Bars Coverage for Claim Arising out of Conduct Related to Joint Venture

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The United States District Court for the Middle District of Florida, applying Florida law, has held that a Business Enterprise exclusion in a professional liability policy barred coverage for claims brought against a law firm...more

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No Coverage for Claim That Related Back to Prior Policy Period

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The United States District Court for the District of New Jersey, applying New Jersey law, granted an insurer’s motion for summary judgment, finding that an insured’s claim related back to a prior policy period when the...more

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Threat of Bad Faith Does Not Constitute a “Claim” Under Insurance Company’s Professional Liability Policy

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An Ohio federal court, applying Ohio law, has held that a letter threatening a bad faith action against an insured insurance company did not constitute a “Claim” for the purposes of the company’s errors and omissions...more

Rivkin Radler LLP

Insurance Update - April 2024

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Dominance was the theme of this year’s NCAA basketball tournament, with the UConn men’s team winning back-to-back championships and the South Carolina women’s team reclaiming the title with a perfect record. But let’s not...more

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Second Circuit Determines Letter Threatening Litigation Constitutes a Claim First Made Prior to the Policy Period

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The United States Court of Appeals for the Second Circuit, applying New York law, has held that a letter asserting legal liabilities and threatening litigation constitutes a claim first made prior to the policy period. The...more

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Wrongful Business Practices and Wrongful Death Lawsuits Against Nursing Facility Alleging Understaffing Held Not Related Claims

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The United States District Court for the Central District of California, applying California law, has held that wrongful business practices and wrongful death lawsuits against a nursing facility both alleging understaffing by...more

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

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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

Rivkin Radler LLP

Insurance Update - February 23, 2024

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In this month’s insurance update, we address: •Whether opioid suits allege an occurrence - •Whether the recurring presence of wild turkeys is “infestation” - •Whether improper copying of an industry publication was in...more

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Allegation That Officer was CEO of Insured Organization Sufficient to Survive Capacity Challenge to D&O Coverage

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The United States District Court for the Central District of California, applying California law, has held that an underlying pleading sufficiently alleged that an individual was sued in an insured capacity as an officer of...more

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California Court of Appeal Confirms Investment Advisor’s Unauthorized Copying of Trade Publication Is Not a Wrongful Act in the...

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In a win for Wiley’s client, the California Court of Appeal, applying California law, affirmed the grant of an insurance tower’s motion for summary judgment, finding that an investment advisor’s unauthorized copying of a...more

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Wage and Hour Violation Exclusion Applies to Allegations of Untimely Payments in Connection with Scheme to Underpay Employees

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A Pennsylvania federal court, applying Pennsylvania law, held that a policy’s Wage and Hour Violation exclusion applied to the entirety of underlying class actions that alleged the insured employer schemed to underpay its...more

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An Indictment is Not a Claim Under Lawyer’s Professional Liability Policy Because It Does Not Demand Relief

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In a win for Wiley’s clients, the Fourth Circuit has held that a federal indictment containing a criminal forfeiture allegation does not constitute a “claim” under a law firm’s professional liability policy because a...more

Rivkin Radler LLP

Insurance Update - December 2023

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Our December Insurance Update features a few firsts from state high courts. For the first time: •The Supreme Court of Hawaii addresses reimbursement of defense costs. •The Supreme Court of Illinois addresses coverage for...more

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Court Rejects Assumption that Wrongful Acts are Related Based on Inclusion in Single Complaint

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The United States District Court for the Central District of California, applying California law, has held that, based on the initial pleadings, it could not determine in the insurer’s favor whether wrongful acts alleged...more

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No Coverage for Lawsuit Served on Insured’s Registered Agent Prior to Policy Inception

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In a win for Wiley’s client, the U.S. Court of Appeals for the Eleventh Circuit, applying District of Columbia law, affirmed judgment on the pleadings that no coverage is available for a lawsuit because the “claim” was first...more

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

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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

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California Court Asserts Insurer Bad Faith

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The United States District Court for the Southern District of California, applying California law, has held that a professional liability insurer acted in bad faith by unreasonably maintaining its position that its policy did...more

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Based on Defamation Allegations, Insurer Must Defend Property Management Company against Lawsuit for Unlawful Security Deposit and...

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The United States District Court for the Southern District of California, applying California law, held that a professional liability insurer had a duty to defend a property management company against a class action lawsuit...more

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Utah Federal Court Holds That Malpractice Claim “Resulting From” Sanctions on Insured Law Firm Seeks “Damages”

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A Utah federal district court, applying Utah law, has held that a malpractice action “resulting from” or “incident to” a court’s decision to assess sanctions on an insured law firm for its violation of a discovery rule...more

Rivkin Radler LLP

Insurance Update - June 2023

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Courts took up some interesting insurance questions this past month. Here’s some we address in our June Insurance Update. When a government sponsored cyberattack infects computers worldwide, does the war exclusion apply? ...more

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