Coverage & Claims

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In Highland Crusader Offshore Partners v Deutsche Bank AG ([2009] EWCA Civ 725) the Court of Appeal considered the operation of a non-exclusive jurisdiction clause, whereby the parties submitted to English jurisdiction (but were not permitted from proceeding in another country of competent jurisdiction), against the background of proceedings in Texas and London. …
Read More UK: Court of Appeal Considers Parallel Proceedings and Non-Exclusive Jurisdiction Clauses

The First Circuit recently held that an insured was not entitled to coverage under a Professional Liability claims made and reported policy where the claim is not both made against the insured and reported to the insurer within the policy period. …
Read More First Circuit: No Coverage Under Claims Made and Reported Policy If Insured Fails to Report Claim within Policy Period

Earlier this month, the Sixth Circuit affirmed a district court decision granting summary judgment to a professional liability insurer where it provided a defense in a state court action but denied coverage in a subsequent related arbitration. 

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Read More Sixth Circuit: Insurer That Defended Insured in State Court Action Need Not Defend Insured in Subsequent Related Arbitration; Wording of Arbitration Claim Precludes Coverage

In a short letter-to-counsel opinion, Vice Chancellor John Noble of the Delaware Chancery Court held that a prior order granting advancement to two officers and directors can be modified based on changes in factual circumstances. …
Read More Delaware Court: Right to Advancement of Defense Costs for Defamation Suit can be Modified Based on Changes in Factual Circumstances

On July 10, 2009, the appellate division reversed the motion court’s ruling in Sevenson Envtl. Serrvices, Inc. v. Sirius Am. Ins. Co., Case No. 02260/08 (4th Dept.), and held that (1) the insured’s 15-month delay in providing notice of the claim was unreasonable as a matter of law; (2) the insurer need not prove that it was prejudiced by the insured’s untimely notice to disclaim coverage; and (3) the insurer’s disclaimer of coverage on late notice grounds 24 days after receiving notice of the claim was timely as a matter of law. …
Read More NY Appellate Court: Insurer’s Disclaimer Timely and Proper Despite Lack of Prejudice Resulting From Insured’s Late Notice of Claim

In a highly anticipated decision, the United States Court of Appeals for the Second Circuit affirmed last week that investment advisor Hennessee Group LLC could not be liable on the claims asserted by one of its clients for recommending that the client invest in a hedge fund that turned out to be nothing more than a Ponzi scheme perpetrated by Bayou Group LLC. …
Read More Second Circuit Upholds Dismissal for Advisor Who Recommended Bayou Group Hedge Fund

Several prominent mediators have come together to create REMEDI, the Re/Insurance Mediation Institute, to foster the  development of mediation as a tool for resolving reinsurance and insurance disputes. …
Read More REMEDI, the Re/Insurance Mediation Institute, Formed To Promote Mediation

Last month, the Connecticut Appellate Court ruled that where coverage is excluded under a policy of insurance, a plaintiff may not pursue a bad faith claim against the insured in connection with the insured’s denial of coverage. 

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Read More Connecticut Appellate Court: Plaintiff May Not Maintain Bad Faith Claim in Connection With a Denial of Coverage Where Coverage is Excluded