Judge: Fact Issue Exists As To Whether Insured Agreed To Split Allocation Of Costs

Mealey's (March 3, 2016, 1:54 PM EST) -- NEW ORLEANS — A Louisiana federal judge held Feb. 29 that although a directors and officers liability insurance policy’s allocation clause limiting an insurer’s duty to defend is not prohibited by Louisiana public policy, there remains a genuine issue of material fact regarding whether the insured ever agreed to a “fifty-fifty allocation” of defense costs (Housing Authority Of New Orleans v. Landmark Insurance Co., No. 15-1080, E.D. La.; 2016 U.S. Dist. LEXIS 24419).

(Opinion available. Document #13-160317-001Z.)

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