News & Analysis as of

Wrongful Acts Insurance Industry

Wiley Rein LLP

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

Wiley Rein LLP

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

Wiley Rein LLP

Texas Court Finds That Trademark Infringement Claims Involve Interrelated Wrongful Acts

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The United States District Court for the Western District of Texas, applying Texas law, has held that an insured is not entitled to coverage under a claims-made-and-reported policy because the tendered lawsuit was...more

Wiley Rein LLP

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

Wiley Rein LLP

Misappropriation Exclusion Bars Coverage for Claim Involving Improper Transfer of Escrow Funds, but Insurer Must Defend Against...

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The United States District Court for the Southern District of Florida, applying Florida law, has held that a professional liability insurer did not have a duty to defend or indemnify its insured in a lawsuit involving the...more

Wiley Rein LLP

Supreme Court of Delaware Affirms Denial of Coverage Under Run-Off Exclusion

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The Supreme Court of Delaware affirmed a trial court decision holding that a “run-off exclusion” in a management and company liability policy absolved an insurer of the obligation to advance defense costs. Ferrellgas Partners...more

Wiley Rein LLP

Lawsuits by Two Employees Alleging Retaliation and Discrimination Arise From Interrelated Wrongful Acts

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In a win for Wiley’s client, the United States District Court for the Eastern District of New York, applying New York law, has held that a private company management and employment practices liability policy does not cover a...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

Wiley Rein LLP

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

Wiley Rein LLP

No Coverage for Wrongful Acts of Acquired Company Occurring Before Purchase

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In a win for Wiley’s client, the United States District Court for the Western District of Pennsylvania, applying Pennsylvania law, determined that an insured was not entitled to coverage for a judgment against it because both...more

Wiley Rein LLP

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

Wiley Rein LLP

Court Holds Retroactive Date Exclusion Is Ambiguous Under California Law

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A federal district court, applying California law, has determined that an insurer owed a duty to defend because the policy’s retroactive date exclusion was ambiguous in that it could reasonably be interpreted to apply only to...more

Wiley Rein LLP

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

Wiley Rein LLP

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

Wiley Rein LLP

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

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

Wiley Rein LLP

Related Claim Provision Bars Coverage for Discrimination Claims Asserted Over a Six-Year Period

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Applying Illinois law, the First District Appellate Court of Illinois has held that a related wrongful acts provision barred coverage for a series of “claims” made over the course of six years because the claims—as the...more

Wiley Rein LLP

Fourth Circuit: Search Warrant Does Not Constitute a “Claim”

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The United States Court of Appeals for the Fourth Circuit, applying Maryland law, has affirmed a ruling that no coverage was available for costs incurred in connection with a government investigation, finding that the...more

Lowenstein Sandler LLP

Wearing Multiple Hats: Making Sure You Are Covered in All Capacities

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Today on Don't Take No for an Answer, Lynda A. Bennett and Eric Jesse discuss what happens under D&O policies when an executive wears multiple hats—or, as it’s known in the insurance industry— acts in more than one capacity,...more

Foley Hoag LLP

Is a CID or Government Subpoena a Claim?

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For many companies, particularly those in highly regulated industries, the receipt of a civil investigative demand (CID) or subpoena from the government can understandably trigger stress. What might not be top of mind is...more

Wiley Rein LLP

Coverage Barred by Related Claim Made Prior to Policy Period and Prior Knowledge Exclusion

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Applying New York law, the United States District Court for the Southern District of New York has held that no coverage exists under a professional liability policy because the lawsuit for which the insured sought coverage...more

Wiley Rein LLP

Employment Practices Exclusion of D&O Policy Bars Coverage for Employee Wrongful Death Lawsuit

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The United States Court of Appeals for the Sixth Circuit, applying Ohio law, has held that a directors and officers policy’s employment practices exclusion barred coverage for a wrongful death suit alleging failure to...more

Wiley Rein LLP

Coverage Barred by Related Claim Made Prior to Policy Period

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The United States District Court for the Eastern District of Louisiana has held that no coverage exists under a professional liability policy because the lawsuit for which the insureds sought coverage was based on the same or...more

Wiley Rein LLP

Despite Acceptance of Coverage by Primary Insurer, Excess Policy Bars Coverage for Claim Deemed Related Back to Prior Policy...

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Applying North Carolina law, a federal district court has held that an excess insurer had no duty to indemnify for a 2020 securities class action that related back to various antitrust lawsuits filed prior to the applicable...more

Wiley Rein LLP

‘Wrongful Acts’ Includes Both Negligent and Intentional Acts

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The United States District Court for the Northern District of Illinois, applying Illinois law, has held that an insurer had a duty to defend an insured condominium association and its board members against an underlying...more

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