News & Analysis as of

Denial of Insurance Coverage Breach of Contract Professional Liability Insurance

Wiley Rein LLP

Contractual Liability Exclusion Defeats Garnishment Proceeding Against Insurer

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The United States District Court for the Eastern District of Pennsylvania, applying Pennsylvania law, has held that an insurer was not liable as garnishee in a claimant’s proceeding to collect a default judgment against an...more

Wiley Rein LLP

Trade Secret Disclosure Qualifies as a “Privacy Event” Under Professional Liability Policy

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The Delaware Superior Court, applying Delaware law, has held that an insured adequately stated a claim for breach of contract because a trade secret constitutes “non-public information,” thereby implicating coverage for a...more

Marshall Dennehey

New Jersey District Court Affirms Irrelevance of Breach of Contract Claims in Cases Involving Woerner Actions.

Marshall Dennehey on

Law Office of Drew J. Bauman v. Hanover Insurance Company, 2023 WL 2238552 (D.N.J. Feb. 27, 2023) - The plaintiffs had maintained a professional liability insurance policy with Hanover from October 2017 to October 2019. They...more

Wiley Rein LLP

Second Circuit Affirms No Duty to Defend Claims Against Construction Firm Outside the Scope of Professional Liability Coverage

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The United States Court of Appeals for the Second Circuit, applying New York law, has held that neither of two claims against an insured construction company fell within the scope of coverage under the company’s claims-made...more

Wiley Rein LLP

California Court Finds Insolvency Exclusion Ambiguous, Limits Application to Insolvency of Third Parties Other Than Claimant

Wiley Rein LLP on

A California federal district court, applying California law, has held that an insolvency exclusion in a bankers’ professional liability policy did not bar coverage for a lawsuit filed by a receiver against a bank, finding...more

Carlton Fields

Years of Embezzlement Precluded From Coverage Under E&O Policy’s Commingling Exclusion

Carlton Fields on

A federal district court in North Dakota recently granted an insurer’s motion to dismiss in Campbell Property Management LLC v. Lloyd’s Syndicate 3624, finding that both prongs of a “commingling exclusion” to coverage...more

Goulston & Storrs PC

Eleventh Circuit Finds No Coverage for Contempt Proceedings under Lloyd's Professional Liability Insurance Policy

Goulston & Storrs PC on

In Jones, Foster, Johnston & Stubbs, P.A. v. Prosight-Syndicate 1110 at Lloyd’s, United States No. 15-12399, 2017 WL 586450 (11th Cir., February 14, 2017) the insured law firm sought to recover legal fees and costs incurred...more

Pullman & Comley, LLC

Too Soon! First Circuit Finds No Duty To Defend Before Suit Is Filed

Pullman & Comley, LLC on

Can something short of the filing of a complaint trigger an insurer’s duty to defend? It’s not an idle question. Uncertainty on this issue could produce an unintended breach, and, in some jurisdictions, breach of the duty to...more

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