Leland H. Jones, IV

Firm/Organization: Wiley Rein LLP

Latest Articles

No Rescission Based on Application Signer’s Fraud; Fraudster’s Knowledge Cannot Be Imputed to Bank

August 10, 2016

Applying Louisiana law, the United States District Court for the Western District of Louisiana has held that an insurer cannot rescind a fidelity bond issued to a bank because it could not prove as a matter of law that the bank intended to deceive the insurer. Everest Nat’l Ins. Co. v. Tri-State Bancshares, Inc., No. 5:15-cv-1491 (W.D. La. Aug. 2, 2016). Even though the officer who signed the bond application admittedly perpetrated the fraud,…

Wiley Executive Summary

Insurer Entitled to Rescind Policy Based on Insured’s Failure to Disclose Claim Made After Application Submitted but Before Coverage Bound

By Leland H. Jones, IV

July 28, 2016

Applying Iowa law, the United States Court of Appeals for the Eighth Circuit has held that an insurer can rescind an E&O policy because the insured failed to disclose the existence of a claim made after the submission of the application but before the insured agreed to purchase coverage. Capson Physicians Ins. Co. v. MMIC Ins. Inc., 2016 WL 3902654 (8th Cir. July 19, 2016). The court also held that the insurer’s failure to…

Wiley Executive Summary

No Coverage for Lawsuit After Policy Period that Does Not Arise from Notice of Circumstances

By Leland H. Jones, IV

June 20, 2016

Applying Illinois law, the United States District Court for the Northern District of Illinois has held that no coverage was available under an E&O policy for a lawsuit first made after the policy expired because it did not arise out of a notice of circumstances provided during the policy period. St. Paul Mercury Ins. Co. v. Hershare Fin. Corp., 2016 WL 3227311 (N.D. Ill. June 13, 2016). …

Wiley Executive Summary

Excess Insurer Can Pursue Statutory and Common Law Bad Faith Claims Against Primary Insurer as Assignee of Insured

By Leland H. Jones, IV

June 2, 2016

Applying Rhode Island law, the United States District Court for the District of Rhode Island has held that an excess insurer can maintain a cause of action for bad faith failure to settle against a primary insurer. Columbia Cas. Co. v. Ironshore Spec. Ins. Co., 2016 WL 2930927 (D.R.I. May 19, 2016). In addition, the court held that the enactment of statutory bad faith did not preclude a cause of action for common law…

Wiley Executive Summary

Insurer Not Estopped from Denying Coverage for Failing to Send Second Coverage Letter

By Leland H. Jones, IV

April 25, 2016

Applying Massachusetts law, the United States District Court for the District of Massachusetts has held that an insurer is not estopped from denying coverage for a subsequent claim when it already issued a coverage letter for litigation based on the same facts and involving the same coverage issues. American Guar. & Liab. Ins. Co. v. Lamond, 2016 WL 1312008 (D. Mass. Apr. 4, 2016). In addition, the court held that the insurer did not…

Wiley Executive Summary

Prior Knowledge Condition Does Not Bar Coverage for Suit Alleging Negligent Licensure of Foster Parent

By Leland H. Jones, IV

April 4, 2016

Applying Florida law, the United States District Court for the Middle District of Florida has held that a prior knowledge exclusion does not preclude an insurer’s duty to defend a foster care licensing agency in a lawsuit alleging negligent licensing. Diamond State Ins. Co. v. Boys’ Home Ass’n, Inc., 2016 WL 1110422 (M.D. Fla. Mar. 22, 2016). However, the court ruled that it could not determine the insurer’s duty to indemnify until the underlying…

Wiley Executive Summary

Insurer May Allocate Defense Costs Under Duty to Defend Policy

By Leland H. Jones, IV

March 10, 2016

Applying Louisiana law, the United States District Court for the Eastern District of Louisiana has held that an allocation provision in a duty to defend policy allowed an insurer to allocate defense costs between covered and non-covered causes of action. Housing Auth. of New Orleans v. Landmark Ins. Co., 2016 WL 772649 (E.D. La. Feb. 29, 2016).…

Wiley Executive Summary

Insurer Could Face Bad Faith Liability Even Though It Has No Duty To Defend

By Leland H. Jones, IV

February 3, 2016

Applying Utah law, the United States District Court for the District of Utah held that an insurer could potentially face bad faith liability even though the insurer had no duty to defend the insured against an underlying lawsuit. Travelers Prop. Cas. Co. of Am. v. Fed. Recovery Serv., Inc., 2016 WL 156453 (D. Utah Jan. 12, 2016).…

Wiley Executive Summary

Specific Litigation Exclusion Bars Coverage for Condo Owners’ Second Lawsuit against Condo Association

By Leland H. Jones, IV

December 14, 2015

Applying New Jersey law, a New Jersey federal court held that a specific litigation exclusion barred coverage for a second lawsuit brought against a condominium association by the same condominium owners. The One James Plaza Condo. Assoc., Inc. v. RSUI Group, Inc., 2015 WL 7760179 (D.N.J. Dec. 2, 2015). In addition, the court held that the insurer did not act in bad faith because its coverage denial was at least “fairly debatable.”…

Wiley Executive Summary

No Coverage for Claims Arising from Failure to Appeal Adverse Decision

By Leland H. Jones, IV

November 24, 2015

Applying Massachusetts law, a Massachusetts federal court has held that no coverage was available under two claims-made policies because the insured knew before policy inception that a client would bring a claim when the insured failed to perfect an appeal of an adverse zoning decision. Gandor v. Torus Nat’l Ins. Co., 2015 WL 6043621 (D. Mass. Oct. 15, 2015). In addition, the court held that a former client’s suit for failure properly to insure…

Leland H. Jones, IV

No Rescission Based on Application Signer’s Fraud; Fraudster’s Knowledge Cannot Be Imputed to Bank

Insurer Entitled to Rescind Policy Based on Insured’s Failure to Disclose Claim Made After Application Submitted but Before Coverage Bound

No Coverage for Lawsuit After Policy Period that Does Not Arise from Notice of Circumstances

Excess Insurer Can Pursue Statutory and Common Law Bad Faith Claims Against Primary Insurer as Assignee of Insured

Insurer Not Estopped from Denying Coverage for Failing to Send Second Coverage Letter

Prior Knowledge Condition Does Not Bar Coverage for Suit Alleging Negligent Licensure of Foster Parent

Insurer May Allocate Defense Costs Under Duty to Defend Policy

Insurer Could Face Bad Faith Liability Even Though It Has No Duty To Defend

Specific Litigation Exclusion Bars Coverage for Condo Owners’ Second Lawsuit against Condo Association

No Coverage for Claims Arising from Failure to Appeal Adverse Decision

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