Patrick Bracher (ZA)

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Motor policy indemnity refused for kidnap and assault by insured using insured vehicle (US)

A Montana Supreme Court rejected an extraordinary claim by the insured who had kidnapped, physically assaulted, threatened, restrained and injured his estranged wife using the insured vehicle in the course of the kidnap.  The court had no difficulty in finding that the insured’s conduct was not accidental for the purposes of the policy and that … Continue reading

What circumstances must be disclosed by a director negotiating a contract? (Aus)

The insured company represented by its sole director and shareholder agreed to construct a residential aged care building on the property.  The company failed to disclose at a material time that the company was in severe financial distress and unable to meet its obligations including tax obligations. The Australian Federal Court held that the failure … Continue reading

Keeping a company’s contract alive creates a ‘personal advantage’ for a director under D&O Policy exclusion (Aus)

An Australian federal court held that where a director failed to disclose the financial distress of his company to the prejudice of the other contracting party under a constructions contract, the director “gained personal profit or advantage” for the purposes of an exclusion of the Directors and Officers Policy and no claim was payable by … Continue reading

Insurers not liable for shareholder claim for listeria outbreak (US)

A creamery was sued by shareholders who allege that the company’s share price declined because the executives breached their fiduciary duty by continuing to allow the company to produce and distribute ice cream when knowing that some products tested positive for listeria.  The policy did not cover a shareholder lawsuit claiming financial harm but only … Continue reading

Shooting death excluded from insurance by battery and weapons exception (US)

This blog was co-authored by: Anitah Ndhlovu, Candidate Attorney When a man was shot outside a food store, the wife sued the store’s operator and sought the benefits of the store’s insurance liability policy.  The claim failed because of two exclusions, namely an assault and battery exclusion and a weapons exclusion. The policy indemnified “those … Continue reading

Intentional loss exception excludes insurance cover for house burned down by daughter (US)

This blog was co-authored by: Anitah Ndhlovu, Candidate Attorney The insured, under a homeowner’s insurance policy, lived in a house with their 18 year old daughter, an “insured” under the policy, who ignited her father’s bedspread intending to make him mad. She could not put out the fire which destroyed the house.  The claim against … Continue reading

All risks claimant is required by law to prove cause of event for insurance claim (US)

The claimant was insured under an all-risks insurance policy covering a vessel.  The policy did not cover engine damage unless an accidental external event caused the damage. The vessel suffered catastrophic engine failure.  The court held that the insured had to come forward with evidence that an external event caused the engine damage and the … Continue reading

Claim is not made during claims-made policy period until formally made

When a manufacture’s product caused harm to an infant, the manufacture failed in its claims against its insurer under a claims–made policy because passing on news articles about the event to the insurer did not constitute a “claim” under the policy. A two-year-old infant swallowed small magnets known as “Buckyballs” which shredded his internal organs … Continue reading

US Court allows regulator to proceed with “shadow trading” claim as insider trading

A San Francisco Court held that an executive may be held liable for “shadow trading” namely trading in securities of a similarly situated competitor’s shares while in possession of insider information about his own company.  The defendant was a senior director of business development at a pharmaceutical company bound by the company’s insider trading policy.  … Continue reading

Damages for data breach require actual harm (US)

A New York Court dismissed the claim by two former employees against their professional services firm based on an alleged failure to protect their personal information in a data breach. The court held that a claimant for damages in these circumstances must prove actual harm.  The employees’ had only speculated as to whether they might … Continue reading

Baby-sitting may be a “business” under an insurance policy exclusion and a word on ambiguity (US)

Baby-sitting may be a “business” under an insurance policy exclusion and a word on ambiguity (US) In a tragic incident, a baby-sitter who received $25 per day when she provided home daycare services, was caring for a deceased infant who died while in her care from bedding asphyxia.  It was held that the baby-sitter did … Continue reading

Insurer’s refusal to pay excess body shop storage fees upheld (US)

Insurer’s refusal to pay excess body shop storage fees upheld (US) A Massachusetts Appeals Court refused to allow a class action against an insurer accused of deducting excess body shop storage fees for vehicles deemed total losses because the policy wording permitted the deduction.  Under the policy, the insurer agreed to pay for “reasonable expenses … Continue reading