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Oklahoma Supreme Court joins majority of COVID-19 decisions and finds for insurer in COVID-19 coverage dispute with Cherokee Nation
The Oklahoma Supreme Court is the most recent state high court to hold that property insurance policies do not provide coverage for COVID-19 related business interruption losses. In Cherokee Nation v. Lexington Insurance Company, 2022 OK 71 (Sept. 13, 2022), the court reversed a trial court’s ruling that a Tribal Property Insurance Program (TPIP) policy provided coverage for the Cherokee Nation’s alleged business interruption losses resulting from its temporary closure of its properties in 2020 as a result of the COVID-19 Pandemic.
Mending the Gap (in Pleadings): Texas Supreme Court allows for consideration of extrinsic evidence in evaluating an insurer’s duty to defend
The Texas Supreme Court answered certified questions from the Fifth Circuit last week in Monroe Guaranty Insurance Company v. BITCO General Insurance Corporation, carving out an exception to the long-standing “eight corners rule” defining when a liability insurer is obligated to defend its insured in an underlying lawsuit.
Wisconsin federal court interprets “Bump-Up” provision in D&O policy
On August 18, 2021, the Eastern District of Wisconsin concluded in Joy Global Inc. v. Columbia Casualty Co., 2021 WL 3667077 (E.D. Wis. Aug. 18, 2021), that the “Bump-Up” carve-out from the definition of “Loss” in a Directors and Officers’ (“D&O”) policy precluded indemnity coverage for several shareholder lawsuits arising out of an acquisition transaction.
The implications of the Delaware Supreme Court’s pronouncement that D&O liability for actual fraud is insurable
On March 3, 2021, the Delaware Supreme Court announced in RSUI Indemnity Co. v. Dole Food Company, Inc., et al., 248 A.3d 887 (Del. 2021) (“Dole”), that Delaware public policy permits indemnity insurance coverage for liability arising from fraud. Therefore, in Delaware, unscrupulous executives found to have lied to investors may potentially avoid direct responsibility for any damages caused and simply pass the buck for any judgment or settlement to the company’s Director’s & Officer’s (“D&O”) insurer.
Delaware Supreme Court expands the application of Delaware law in D&O coverage disputes
On March 3, 2021, the Delaware Supreme Court issued an important opinion in RSUI Indem. Co. v. Murdock, 2021 WL 803867 (Del. Mar. 3, 2021), a Directors and Officers’ (D&O) liability insurance coverage dispute.