Panel: Contractual Liability Exclusion Bars Directors, Officers Liability Coverage

Mealey's (August 8, 2016, 10:39 AM EDT) -- SEATTLE — The Ninth Circuit U.S. Court of Appeals on Aug. 3 affirmed a lower federal court’s ruling that a directors and officers liability insurer has no duty to defend its insured against an underlying lawsuit arising from the insured’s termination of a technology license agreement (TLA), finding that coverage is barred by the policy’s contractual liability exclusion (X2 Biosystems Inc. v. Federal Insurance Co., No. 14-35125, 9th Cir.; 2016 U.S. App. LEXIS 14153)....