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