Court Grants Motion To Dismiss - "Wrongful Acts" under E&O Policy Does Not Include Criminal Investigation

December 1, 2006

US Liability's insured was the target of a criminal investigation. It sought a defense for the costs involved in responding to this investigation from US Liability, under its Professional Liability insurance policy. The insured claimed that the policy's coverage for "wrongful acts" included coverage for criminal investigations. US Liability denied coverage and was sued in Federal Court for breach of contract and bad faith. Bryan M. Weiss of Murchison & Cumming, on behalf of US Liability, filed a motion under FRCP 12(b)(6) to have the case dismissed at the pleadings stage for lack of merit. The court granted the motion and dismissed the case with prejudice.