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Insurance Industry Defense Costs

Lowenstein Sandler LLP

Allocation: Debunking the “Partial” Duty to Defend Myth

In this episode of "Don’t Take No for an Answer," Lynda A. Bennett and Alexander B. Corson explore the complex issue of "allocation" in the context of defense costs in insurance claims. They discuss what steps to take when...more

Wiley Rein LLP

Insured Cannot Block Coverage For Settlement By Another Insured Based On Consent and Cooperation Provisions in D&O Policy

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The United States District Court for the Southern District of New York, applying New York law, has held that one Insured cannot use consent and cooperation provisions in a D&O insurance policy to block coverage for another...more

White and Williams LLP

First Circuit Limits Insurers’ Right to Recoup Defense Costs, Settlement Payments

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Weighing in on an issue that has divided courts nationwide, the U.S. Court of Appeals for the First Circuit has ruled that an insurer under Massachusetts law has no right to recoup defense costs, or amounts the insurer pays...more

Wiley Rein LLP

California SPAC Entitled to Advancement of Subpoena-Related Costs Post-Name Change Based on “Potentially Covered” Standard

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The United States District Court for the Northern District of California, applying California law, has held that two former directors and officers were entitled to advancement of defense costs incurred in connection with SEC...more

Farella Braun + Martel LLP

When Can an Insurer Pursue a Malpractice Claim Against Defense Counsel Retained for an Insured? Part II: When Can an Insurer...

In Part I (”When Can an Insurer Pursue a Malpractice Claim Against Defense Counsel Retained for an Insured”) of our two-part article published by the ABA’s Insurance Coverage Litigation Committee (ICLC), we addressed the...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

No Coverage for SEC Investigation of Insured Company

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The Superior Court of Delaware has held that collateral estoppel bars an insured company from relitigating whether, under a second excess follow-form D&O policy, an SEC letter and order (collectively the “SEC Matter”)...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

Wiley Rein LLP

Second Circuit Affirms Ruling That Excess D&O Insurer Is Not Required to Advance Defense Costs

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The U.S. Court of Appeals for the Second Circuit, applying New York law, held that a former director is not entitled to injunctive relief requiring an excess D&O insurer to pay his defense costs because the director has not...more

Wiley Rein LLP

No Coverage for Lawsuit Where “Claim” First Made at Time of Tolling Agreement

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In a win for Wiley’s client, the Supreme Court of New York for New York County, applying New York law, has held that no coverage is available for a legal malpractice lawsuit because the “claim” was first made before the...more

Rivkin Radler LLP

Insurance Update - October 23, 2023

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Here’s what we discuss in our October Insurance Update. Illinois: Environmental Suits Alleging Non-Compliance with Laws and Regulations Did Not Assert an “Occurrence”- Massachusetts (federal): Insurer May Consider Sums...more

Womble Bond Dickinson

Sam Bankman-Fried Case Provides Lessons on Fraud and D&O Insurance

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Sam Bankman-Fried’s criminal trial started this week; and on the same day, he sued one of his director & officer insurers. And a lot of people are asking, why? Is the timing a coincidence or on purpose? Shouldn’t he be...more

Wiley Rein LLP

Massachusetts Federal Court Holds Defense Costs Must Be Reasonably Allocated Between Insured and Non-Insured Parties

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A Massachusetts federal court, applying Massachusetts law, has held that the allocation of legal fees between two corporations is determined based on what reasonably would have been negotiated had each party in the joint...more

Snell & Wilmer

Nevada Prohibits “Burning Limits” Liability Insurance Policies

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On June 3, 2023, the Nevada legislature enacted a law prohibiting insurance companies from issuing or renewing policies of liability insurance that contain defense-within-limits provisions, or so-called “burning limits”...more

Lowenstein Sandler LLP

Finding the Right Fit: The Duty to Defend vs. the Duty to Reimburse (Part II)

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Hosts Lynda A. Bennett and Eric Jesse of Lowenstein’s Insurance Recovery Group continue their discussion about the difference between the duty to defend, the duty to reimburse, and the duty to advance. They run through the...more

Lowenstein Sandler LLP

The Difference between the Duty to Defend and the Duty to Reimburse: What Policyholders Need to Know

In this episode of “Don’t Take No for an Answer,” hosts Lynda A. Bennett and Eric Jesse of Lowenstein’s Insurance Recovery Group discuss the difference between a duty to defend versus a duty to reimburse. They explain why...more

Wiley Rein LLP

Delaware Law Applies to Coverage Dispute over Stockholder Appraisal Action

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The Delaware Supreme Court has held that Delaware law, rather than Montana law, applies in a dispute over D&O coverage for defense costs incurred in a stockholder appraisal action. Stillwater Mining Co. v. Nat’l Union Fire...more

Wiley Rein LLP

Insurer Entitled to Recoup Defense Costs Absent Express Policy Provision

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The United States District Court for the Eastern District of Michigan, applying Michigan law, has held that, even absent an express policy provision regarding recoupment, an insurer was entitled to recoup defense costs after...more

Cozen O'Connor

Texas Court of Appeals Nixes Plaintiff’s Attorney’s Fees Award Because Offsets Preclude Prevailing Party Status

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The First Court of Appeals in Houston affirmed an analysis that involved math and application of the Texas Insurance Code. In Jones v. Allstate Vehicle & Property Insurance Company, 2022 Tex. App. LEXIS 8896 (Tex....more

Wiley Rein LLP

Excess Insurer Cannot Challenge Payments by Underlying Carriers

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A North Carolina federal court, applying North Carolina law, has held that an excess insurer may not challenge payments made by underlying carriers. The insured university faced separate lawsuits by two faculty members...more

Wiley Rein LLP

Irreconcilable “Other Insurance” Clauses Result in Pro Rata Allocation of Defense Costs

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The United States District Court for the Eastern District of Michigan, applying Michigan law, has held that irreconcilable “other insurance” provisions in two polices, each with a concurrent duty to defend, cannot be given...more

Wiley Rein LLP

Delaware Federal Court: No Coverage Under D&O Policy For Claims Based On Acts Alleged To Have Occurred Prior To Insured Entity’s...

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Applying Delaware Law, the United States District Court for the District of Delaware has held that there is no coverage for acts undertaken by an insured’s directors and officers that occurred prior to the formation of the...more

Wiley Rein LLP

Excess “Other Insurance” Clause Relieves Insurer of Duty to Contribute to Defense

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The Ohio Court of Appeals, applying Ohio law, has enforced an employment practices liability (“EPL”) carrier’s “other insurance” clause, holding that the insured’s commercial general liability (“CGL”) policy afforded primary...more

White and Williams LLP

Federal Courts Reject Insurers’ Attempts to Recoup Defense Costs Expended Under Reservation of Rights

In situations where there is a dispute over a duty to defend, an insurer may provide a defense to its insured, subject to a reservation of rights, to not only deny coverage for a defense, but also to file a declaratory...more

Rivkin Radler LLP

New York Insurance Coverage Law Update - January 2022

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New York Enacts Comprehensive Insurance Disclosure Act- On December 31, 2021, New York’s Governor Hochul signed into law the Comprehensive Insurance Disclosure Act, that requires defendants, third-party defendants, and...more

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