Panel: ‘Corporate Screw-ups’ Do Not Excuse Insured’s Failure To Give Timely Notice

Mealey's (April 15, 2016, 2:22 PM EDT) -- RICHMOND, Va. — The Fourth Circuit U.S. Court of Appeals held April 14 that internal “corporate screw-ups” provide no basis to excuse an insured’s failure to give its professional liability insurer timely notice of an underlying lawsuit after being validly served with process, further finding that the insurer suffered “actual prejudice” from the late notice (St. Paul Mercury Insurance Company v. American Bank Holdings, Inc., No. 15-1559, 4th Cir.; 2016 U.S. App. LEXIS 6793).

(Opinion available. Document #13-160421-007Z.)

St. Paul Mercury Insurance Co. issued a Bankers...
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