News & Analysis as of

Duty to Defend Willful Misconduct

Wiley Rein LLP

Sexual Misconduct Exclusion Eliminates Duty to Defend Civil Lawsuit

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The United States District Court for the Central District of California, applying federal and California law, has held that there is no coverage for a civil judgment against an employee of an insured because the employee’s...more

Rivkin Radler LLP

New York Insurance Coverage Law Update

Rivkin Radler LLP on

Second Circuit Finds Coverage Where Insurer Unreasonably Delayed In Seeking Rescission and Its Exclusions Did Not Apply WW Trading was sued and sought coverage from United States Liability Insurance Company (USLI) which...more

Farella Braun + Martel LLP

Negligent Hiring and Supervision Can Be an 'Accident'

The California Supreme Court answered the Ninth Circuit’s certified question in Liberty Surplus Insurance v. Ledesma & Meyer Construction. The court rephrased the question presented to it as: “When a third party sues an...more

Orrick, Herrington & Sutcliffe LLP

California Does Not Bar Defense Coverage For "Willful Acts"

"California prohibits insurers from indemnifying policyholders for their intentional misconduct, as a matter of public policy and as codified in California Insurance Code section 533. This bar on insurance coverage, however,...more

Allen Matkins

Criminal Conviction Of De Facto Officer Does Not Preclude D&O Coverage

Allen Matkins on

After a two week trial in 2013, a jury convicted Mitchell J. Stein, a lawyer, of mail, wire, and securities fraud based on evidence that he fabricated press releases and purchase orders to inflate the stock price of his...more

Carlton Fields

Federal Court Holds California Insurance Code Bars Duty to Defend Against False Claims Act Violations

Carlton Fields on

The Central District of California held that Section 533 of the Insurance Code eliminated any potential for coverage for suit under the state False Claims Act. On January 4, the U.S. District Court for the Central...more

Carlton Fields

Accidentally On Purpose: Washington Court Finds Coverage For Contempt Of Court Based On “Misunderstanding”

Carlton Fields on

Professional liability policies cover claims based on the insured’s alleged negligent acts, errors or omissions, and not claims for “sanctions or penalties” for “willful” professional misconduct. But the insurer’s duty to...more

Cozen O'Connor

Eleventh Circuit Holds No Duty to Defend Directors Serving in Mixed Capacities

Cozen O'Connor on

On June 22, 2015, the 11th Circuit affirmed a Georgia federal court decision that there was no coverage under a director’s and officer’s (D&O) insurance policy for claims asserted by beneficiaries of a family trust against a...more

Neal, Gerber & Eisenberg LLP

What Peppers Counsel Needs to Know Before Agreeing to Follow Insurer Litigation Guidelines

When an insurer agrees to defend its insured against a potentially covered claim without reserving the right to deny coverage, the insurer usually has the right to control the defense of the underlying lawsuit. See 3 Jeffrey...more

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