Overview

Objective: Strategic Solutions for Insurers’ Coverage Concerns

Insurance carriers operate in a fluctuating environment. Changing regulatory, financial and risk management models usher in new challenges. Insurance coverage disputes can bring the additional pressures of protracted litigation, reputation management and a diversion of business resources.

Archer Norris attorneys help insurers mitigate, and when possible, avoid these risks. We provide complete litigation services in arbitration, mediation, jury trial, bench trials and on appeals.

Experienced in every aspect of insurance coverage, our attorneys and litigators achieve favorable outcomes in high-demand, highly contentious and complex matters. Our counsel and background include:    

• Drafting manuscript policies
• Coverage analysis and opinions
• Examinations under oath
• Training on coverage issues and claims handling
• Indemnity and subrogation
• Primary and excess carriers
• Reinsurers, agents, brokers and risk managers
• Insurance agency and brokerage issues
• State regulatory compliance
• Insurance related unfair competition claims 

Insurance Coverage Counsel and Defense

Cost-effective and creative case management. Mastery of complex fact patterns and evolving case law.   Numerous trial court and appellate victories. 

Archer Norris has litigated hundreds of coverage disputes and interpreted coverage across the full-spectrum of insurance policies. From a bad faith claim involving The Beatles and Apple Computer, to mold exposure coverage disputes, our experience is extensive.  We counsel on claims-handling strategies and endorsements, issues of bad faith and contribution, duty to defend, duty to settle, breach of contract, third party claims under reservation of rights, and good faith claims handling practices.

Insurance Industry Advisors

Recognized for our industry knowledge, and the engaging way we share it, our attorneys frequently speak on topical insurance issues, including before the Defense Research Institute, Continuing Education of the Bar, American Bar Association and Risk Insurance Management Society.

Representative Matters

Representative Matters

• Outside Directorship Coverage/D&O – Successfully defended against a $50 million claim for coverage arising out of the demise and bankruptcy of At Home, on the ground the Insured Corporation did not qualify as a Minority Held Corporation under the Outside Directorship endorsement.
• Nonprofit/D&O – Defended insurer and obtained successful binding arbitration award holding that $13 million in charitable donations insolvent nonprofit insured failed to distribute to various designated charities did not constitute "Loss" under the policy and insurer had no duty to indemnify the insured.
• Bad Faith/The Beatles - Obtained favorable appellate opinion regarding a $100 million bad faith claim brought by Apple Computer arising out of a failure to defend a trademark infringement action prosecuted by The Beatles. The case was particularly difficult as it involved underlying litigation in Britain and numerous foreign jurisdictions. Judgment was rendered for the defense.
• Duty to Defend/Wage and Hour Class - Secured a favorable AAA arbitration decision that neither carrier had a duty to defend in a multimillion-dollar bad faith claim. The claim was brought under two separate insurance policies for a wage and hour class action involving managers of a retail restaurant chain. More than 20 different legal issues were involved, including the choice of law between Canada and California.
• Bad Faith Verdict - Achieved a defense verdict in a federal court jury trial of an $11 million bad faith claim brought by a judgment creditor and an insured alleging failure to defend and indemnify. The case involved complex questions of insured capacity and collateral estoppel. The jury made a unanimous finding of no coverage in favor of the carrier.
• Contribution/Subrogation - West Coast Fire v. Financial Pacific Ins. Co. (2006) 2006 WL 1076756: This unpublished opinion addressed the doctrines of contribution and subrogation (and their differences) in the context of a dispute between co-insurers.
• Excess Carriers/Home Builder - Achieved favorable settlements on behalf of a Northern California home builder from four excess carriers in a complex, contentious case, which began with construction defect claims and was valued by the media at more than $100 million.
• Bad Faith/Asbestos and Mold - Achieved an unanimous defense verdict in the Superior Court of California County of Los Angeles in a long-cause insurance bad faith, fraud and unfair business practice trial arising from alleged asbestos and mold contamination following a fire.
• Advertising Injury - FRCP 12(b) (6) motion granted in federal court finding no duty to defend under an advertising injury policy and the decision was later affirmed on appeal.
• D&O - Represent insurers in Directors and Officers high-demand coverage disputes, including ongoing representation of an insurer in $50 million coverage case with the board of directors of a bankrupt national retailer.
• D&O - Achieved a unanimous defense verdict in a federal court jury trial of a bad faith claim under a D&O policy. Critical issue was whether an insured person was acting within his insured capacity, as defined in the policy.  Jury verdict was upheld on appeal.
• Nonprofit/D&O - Defended insurers and achieved an arbitration award holding that a Not for Profit D&O policy is not obligated to reimburse its insured for loss.  As defined, the insured incurred a multimillion-dollar deficit leading to its bankruptcy because of insufficient funding and management errors.
• Home Demolition - Demurrer sustained in the Superior Court of California County of Orange finding no coverage under a homeowner's policy for the city's demolition of the insured home.
• Workers Comp - Summary judgment granted in the Superior Court of California County of Los Angeles, and affirmed on appeal, involving a malpractice claim by an insured under a workers compensation policy against in-house counsel appointed by the carrier.
• Inter-related Wrongful Act - Obtained a decision from the Washington state appellate court upholding a summary judgment granted at the trial court level. These courts agreed that under a claim made policy, the Inter-related Wrongful Act definition did not require an insurer to pay defense and indemnity for a prior lawsuit which did not assert a "Claim" as defined.
• Crime Policy - Achieved a decision from the U.S. Court of Appeals for the Ninth Circuit in Los Angeles holding that "direct loss" under a crime policy does not include loss of business reputation, good will or value.
• Bad Faith - Summary judgment granted in a bad faith action in a situation in which no Insured Person had been sued, and no "entity coverage" had been purchased. The insured organization contended that defense and/or indemnity obligations existed, based on the possibility that insured persons could become parties to the underlying action.
• Bad Faith/Employment Practices - Secured an arbitration award in favor of the defense in a bad faith action resulting from denial of an employment dispute brought under an EPL policy. The arbitration panel agreed that there was no coverage for the underlying employment dispute because it did not meet the "claim" definition and was limited only to unpaid contingent bonuses and benefits due the employee.

FAQ

FAQ

Which insurance policy coverage issues do you handle?  
Archer Norris attorneys have interpreted and litigated virtually every kind of property and liability insurance policy including:

• Additional Insured Endorsements
• Advertising
• Personal Injury
• Automobile
• Business Interruption
• Commercial
• Commercial Umbrella
• Construction Defect
• Directors and Officers
• Employment Practices
• Environmental Litigation
• Fiduciary
• Homeowners  
• Intellectual Property
• Maritime  
• Nonprofit Corporations
• Professional Liability
• Uninsured and Underinsured
• Venture Capital
• Workers Compensation

Which insurance carriers do you represent?
Our clients include global, national and regional insurers with California-based coverage issues.  These include:

• AIG Worldsource
• American International Underwriters
• Allianz
• Bristol West Insurance Services of California
• Cambridge Integrated Resources
• Chubb Group
• Farmers Insurance Group of Companies
• GMAC Insurance
• Hanover Insurance Company
• Mid-Continent Group
• Nonprofits’ Insurance Alliance Group
• Oregon Mutual Insurance Company
• Sequoia Insurance Company
• Virginia Surety Company
• XL Specialty Insurance