{"id":899451,"date":"2022-01-04T14:31:01","date_gmt":"2022-01-04T21:31:01","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=899451"},"modified":"2022-01-04T14:31:05","modified_gmt":"2022-01-04T21:31:05","slug":"other-insurance-doesnt-relieve-duty-to-defend","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/other-insurance-doesnt-relieve-duty-to-defend\/","title":{"rendered":"Excess \u201cOther Insurance\u201d Provision Does Not Relieve Insurer\u2019s Duty to Defend"},"content":{"rendered":"\n<p>Nathan Lovett | <a href=\"https:\/\/www.executivesummaryblog.com\/Excess-Other-Insurance-Provision-Does-Not-Relieve-Insurers-Duty-to-Defend\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Wiley Rein<\/a><\/p>\n\n\n\n<p>The United States District Court for the Central District of California, applying California law, has held that a D&amp;O insurer cannot rely on an excess <a href=\"https:\/\/www.myconstructionexpert.com\/blog\/other-insurance-provisions\/\">\u201cother insurance\u201d provision<\/a> to preclude a duty to defend.&nbsp;&nbsp;<em>TriPacific Capital Advisors, LLC v. Fed. Ins. Co.<\/em>, 2021 WL 5316407 (C.D. Cal. Nov. 15, 2021).<\/p>\n\n\n\n<p>The insured is a California-based financial services company that manages institutional capital for residential construction projects.&nbsp; In 2020, a former employee sued the company and the company\u2019s president.&nbsp; The company tendered the action to its D&amp;O and EPL insurers.&nbsp; The EPL insurer agreed to provide a defense, but the company\u2019s D&amp;O insurer denied coverage, asserting, among other things, that its policy applied in excess of the EPL policy.&nbsp;<\/p>\n\n\n\n<p>In the ensuing coverage action, the D&amp;O insurer advanced several arguments to support its contention that it had no duty to defend.&nbsp; First, it argued that the alleged wrongdoing by the company president occurred not in his capacity as a director and officer of the company, but as a joint venture partner, in which case the terms of the policy precluded coverage.&nbsp; The court held that because the president had established a \u201cpotential\u201d that he was acting in his capacity as a director and officer at the time of the alleged wrongdoing, that was sufficient.<\/p>\n\n\n\n<p>Second, the D&amp;O insurer attempted to limit its duty to defend to only those claims that are \u201cpotentially covered\u201d under its policy.&nbsp; The court dismissed this argument, holding that, under California law, \u201cwhere some claims are potentially covered and others are not, the insurer has a duty to defend the action in its entirety.\u201d&nbsp; The court did note, however, that the D&amp;O insurer could attempt to seek reimbursement at the close of litigation for any expenses that were solely allocable to non-covered causes of action.<\/p>\n\n\n\n<p>Finally, the D&amp;O insurer argued that it did not have a duty to defend because its policy had an \u201cother insurance\u201d clause dictating that its policy was excess to any other applicable insurance policies.&nbsp; Thus, it asserted that it sat above the EPL policy, and did not have any defense obligation until the limits of that policy had been exhausted.&nbsp; The court disagreed, holding that \u201cother-insurance provisions are intended to apply in contribution actions between insurers, not in coverage litigation between insurer and insured.\u201d&nbsp; The court also noted that where an insurer has a duty to defend \u2013 which the D&amp;O insurer was determined to have had immediately after tender \u2013 the existence of the \u201cother insurance\u201d clause does not change that duty.&nbsp; The court noted, however, that the D&amp;O insurer could bring an equitable contribution action against the EPL carrier, and in that suit \u201cthe other-insurance provision could impact the allocation of liability.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Nathan Lovett | Wiley Rein The United States District Court for the Central District of California, applying California law, has held that a D&amp;O insurer cannot rely on an excess \u201cother insurance\u201d provision to preclude a duty to defend.&nbsp;&nbsp;TriPacific Capital Advisors, LLC v. Fed. Ins. Co., 2021 WL 5316407 (C.D. Cal. Nov. 15, 2021). The&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/other-insurance-doesnt-relieve-duty-to-defend\/\">Continue reading <span class=\"screen-reader-text\">Excess \u201cOther Insurance\u201d Provision Does Not Relieve Insurer\u2019s Duty to Defend<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[10,10721],"tags":[9895,57,9887],"class_list":["post-899451","post","type-post","status-publish","format-standard","hentry","category-duty-to-defend","category-insurance","tag-advise-consult","tag-duty-to-defend-2","tag-other-insurance-provisions","entry"],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Excess \u201cOther Insurance\u201d Provision Does Not Relieve Insurer\u2019s Duty to Defend - Advise &amp; 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