Federal Judge: False Claims Suit Arose Out Of Insured’s Professional Services

Mealey's (November 30, 2016, 11:15 AM EST) -- SAN FRANCISCO — A California federal judge on Nov. 15 held that an underlying qui tam action brought against an insured under the False Claims Act arose out of the insured’s professional services and, therefore, coverage is barred by the policy’s professional services exclusion, dismissing breach of contract and bad faith claims against the insurer (HotChalk Inc. v. Scottsdale Insurance Co., No. 16-3883, N.D. Calif.; 2016 U.S. Dist. LEXIS 163046)....