Insurance Coverage Litigation & Appeals
When claims can’t be resolved amicably, insurers have turned to LRD attorneys to defend and prosecute coverage litigation. We know how to handle these matters efficiently. We understand the critical junctures in litigation that can help achieve settlement but are not afraid to take cases through trial and appeal. We are comfortable in courts in our home territory and across the country, including the Complex Commercial Litigation Division of the Delaware Superior Court where coverage cases increasingly are litigated.
We have notched significant victories for our clients:
Represented excess D&O insurer in coverage litigation by TD Bank to recover losses arising out of the Scott Rothstein Ponzi scheme. Successfully removed case from state court to federal court using novel “snap removal” procedure. TD Bank, N.A. v. Continental Ins. Co. of New Jersey, No. 19-cv-13457 (D.N.J).
Represented excess carrier in “bump up” coverage litigation in Delaware Superior Court CCLD. Defeated policyholder’s initial summary judgment motion, paving the way for early resolution and exit from case. Harman Int’l Indus., Inc. v. Illinois Nat’l Ins. Co., 2023 WL 3055217 (Del. Super. Apr. 24, 2023).
Represented excess E&O insurer in long-running coverage litigation arising out of bankruptcy of Residential Capital, the residential mortgage division of GMAC. Obtained ruling from bankruptcy court that excess insurers are not liable for prejudgment interest or extracontractual amounts due to lack of underlying exhaustion, eliminating hundreds of millions of dollars of exposure for excess carriers. In re Residential Capital, LLC/Drennen v. Certain Underwriters at Lloyd’s of London, Adv. Pro. No. 15-01025 (Bankr. S.D.N.Y. Dec. 21, 2022).
Obtained summary judgment ruling in favor of insurer holding that weapon exclusion and assault and battery exclusion in CGL policy barred coverage for shooting death at grocery store. Colony Insurance Company v. Henry Properties, Inc., 2022 WL 2668377 (N.D. Ga. July 11, 2022).
Obtained summary judgment ruling in favor of insurer holding that prior knowledge exclusions in architects and engineers professional liability policy barred coverage. ChemTreat, Inc. v. Certain Underwriters at Lloyd’s of London, 2020 WL 5637961 (E.D. Va. Sept. 21, 2020).
Won summary judgment and appellate affirmance for excess carrier that SEC investigation constituted a claim first made before the relevant policy period. Jalbert v. Zurich Serv. Corp., 953 F.3d 143 (1st Cir. 2020).
Won appellate affirmance of judgment for insurer that specific litigation exclusion barred coverage for regulatory investigations, lawsuits, and over one thousand FINRA arbitrations filed after collapse of Puerto Rican bond market. UBS Financial Serv. Inc. of Puerto Rico v. XL Specialty Ins. Co., 929 F.3d 11 (1st Cir. 2019).
Obtained favorable summary judgment ruling holding that lawsuit arising out of three alleged errors constituted a single “claim” under consecutive architects and engineers policies. Nova Southeastern Univ., Inc. v. Continental Cas. Co., 2019 WL 7820594 (S.D. Fla. Dec. 27, 2019).