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The Ninth Circuit Court of Appeals affirmed a lower federal court’s finding that a business and management insurance policy’s prior knowledge and prior litigation exclusions bar coverage for an underlying lawsuit in Douglas Woo, et al. v. Scottsdale In.  Co., No. 14-56992, slip op. (9th Cir.  April 28, 2017).

Certain insureds sued for breach of contract and bad faith for its failure to defend and indemnify them in an underlying action by a creditor seeking to recover a judgment entered against them and the company’s CEO.   Both sides filed motions for summary judgment.

The prior litigation exclusion precluded coverage

Continue Reading 9th Circuit Affirms Application of Prior Litigation and Prior Loss Exclusions as Bar to Coverage