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Posts from February 2020.

On February 7, 2020, the Second Circuit issued a decision in Lepore v. Hartford Fire Ins. Co., Case No. 19‐778‐cv, holding that a CGL policy exclusion for any suit alleging “an infringement or violation of any intellectual property right” was triggered even though the underlying complaint did not contain a direct IP-infringement claim. The Second Circuit affirmed the trial court’s decision granting summary judgment to the insurer, explaining:

Plaintiffs argue that because no violation of IP rights was asserted in the NL suit, the IP exclusion must be read narrowly, and ...

On February 3, 2020, Justice Sherwood of the New York County Commercial Division issued a decision in Alexander v. Starr Surplus Lines Ins. Co., 2020 NY Slip Op 30297(U), granting a preliminary injunction directing a D&O insurer to advance defense costs to a former corporate officer for an investor lawsuit alleging fraudulent inducement.

The insurer (Starr) argued that coverage was barred by a Major Shareholder Exclusion, which provided that the policy would not cover any claim “made by the individual(s) or entity(ies) that own or control . . . 10% or more of the outstanding voting ...

On December 26, 2019, the First Department issued a decision in Fireman’s Fund Ins. Co. v. State Nat’l Ins. Co., 2019 NY Slip Op 09399, holding that a property owner was entitled to coverage for a personal injury lawsuit as an additional insured under a contractor’s CGL Policy, even though the injuries were not caused by the contractor’s negligence.

This case involves a frequently-litigated policy provision in construction-related insurance coverage matters:  the blanket “additional insureds” endorsement to a contractor’s liability policy. (See our previous ...

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