November/December 2002

• First Circuit Holds No Coverage for Complying with Subpoena
• No Coverage for Breach of Express Contract
• Wiley Rein & Fielding Expands Insurance Practice
• No Coverage for Corporation’s Defense Costs and Fees under D&O Policy
• Aggregated Damages in a Class Action Suit Found Inconsistent with the PSLRA
• Estate Representative Breaches D&O Policy Cooperation Clause
• E&O Policy Exclusion Barred Coverage for Claims Made by State Agency
• Ninth Circuit Holds No Coverage for False Claims Act Violations
• Receipt of Letter about Potential Claim by Clerical Employee Did Not Constitute Knowledge by Law Firm
• No Coverage for Trustees of Non-Profit Who Could Not Be Personally Liable
• No Attorneys Fees to Insured for Coverage Litigation
• Insurer Not Liable for Breach of Contract for Deciding to Stop Writing Coverage
• Duty to Defend under Fiduciary Responsibility Policy Includes Claims Unrelated to ERISA
• No Coverage for Legal Malpractice Action under Prior Acts and Knowledge Exclusion
• Financial Gain Exclusion Bars Coverage for E&O Claim; Insurer May Be Estopped from Asserting Exclusion
• Blanket Policies Provide Coverage in Excess of Limits of Project-Specific Policy
• Contra Proferentem Rule Creates Broad Coverage for Claims Alleging Investment Counseling
• Nature of Claim, Not Identity of Claimant, Controls Whether Later-Filed Action Is Related to Prior Lawsuits
• Duty to Defend Arises Even if Professional Services Are Tainted with Fraud
• Insured Must Show Prejudice from Insurer’s Unreasonable Delay in Disclaiming Coverage
• Insured Must Prove that Claim Falls within Coverage Grant to Trigger Duty to Defend
• Bankruptcy Court Authorizes Interim Payment of Limited Expert Costs to Directors and Officers
• No Imputation under Prior Knowledge Provision
• Dismissal and Subsequent Refiling of Action Does Not Alter Trigger Date for Claims-Made Policy
• Plaintiff’s Subpoena of Insurance Applications from Non-Party Insurers Quashed
• Insurer Estopped from Raising Defense Unsuccessfully Litigated in Prior Case
• “In Fact” Language Does Not Require Judicial Determination of Illegal Profiteering
• Coverage for Securities Claim Brought by Former Director Barred by I v. I Exclusion
• Adelphia D&O Policies Are Property of Bankruptcy Estate; Coverage Litigation against Directors and Officers Stayed

August/September 2002

• Lack of Prejudice Bars Cooperation Clause Defense
• Defense Required for Action under Consumer Fraud Statute
• Lack of Timely Notice, Anticipated Claims Exclusion Bar Coverage
• Insureds Had Basis to Anticipate Legal Malpractice Claim
• Fiduciary Shield Doctrine: No Jurisdiction over Director in Rescission Action
• Insured Had Reasonable Basis to Foresee Legal Malpractice Action
• Failure to Report Claims Arising during Policy Period Bars Coverage
• Legal Malpractice Actions Are Not Related; Aggregate and Not Per Claim Limit Applies
• Notice during Renewal Policy Period Deemed Sufficient
• Failure to Reveal Embezzlement Justifies Rescission
• Underwriting Documentation Required to Prove Materiality of Misrepresentation in Rescission Action
• Action Brought by Trustee to Enforce Judgment against Insured Director Is Core Proceeding
• No Coverage for Affirmative Claims Made by Insured
• D&O Policy Proceeds Are Property of Bankruptcy Estate, but Directors Obtain Reimbursement of Defense Fees
• Amended Complaint Does Not Constitute a New Claim
• Trustee Is an Entity Distinct from the Debtor for Purposes of the I V. I Exclusion