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Top Developments – November 2022

SPOTLIGHT: Third Circuit Court of Appeals Affirms No Coverage for Sex Trafficking Claims - In Nautilus Insurance Co. v. Motel Management Services Inc., the Court of Appeals granted a motion for judgment on the pleadings...more

When Can Liability Insurers Sue Appointed Underlying Defense Counsel for Malpractice?

Insured gets sued. Insurer hires defense counsel to represent insured. Defense counsel takes over the case, and eventually, the case ends. Most of the time, the carrier and its insured will be satisfied with the result. There...more

Connecticut Supreme Court Finds Duty to Defend When Case Law is Uncertain

The Connecticut Supreme Court recently addressed whether an insurer has a duty to defend when faced with legal uncertainty as to whether coverage is owed: for example, when there is no Connecticut case law on point, and...more

The Insurer’s Duty to Defend and Pre-Suit Demand Letters What Constitutes a “Suit”?

Commercial general liability (CGL) policies typically provide that an insurer will defend a “suit” that seeks covered “damages” that the insured may be “legally obligated to pay.” This seems simple enough. But can an...more

NY Federal Court Refuses to Consider Extrinsic Evidence of an Insurer’s Claim Handling for a Different Policyholder

In Spandex House v. Hartford Fire Insurance Company, an insurer prevailed in a breach of contract and declaratory judgment action arising from an underlying suit against its insured, Spandex House Inc. In the underlying...more

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