Exclusion’s ‘Derivative Claim Exception’ Does Not Apply, 9th Circuit Affirms

Mealey's (January 2, 2018, 1:51 PM EST) -- SAN FRANCISCO — The Ninth Circuit U.S. Court of Appeals on Dec. 27 affirmed a lower federal court’s finding that the "derivative claim exception" to an insurance policy’s "insured vs. insured" exclusion does not apply, finding that there is no coverage for an underlying lawsuit that an insured’s CEO breached his fiduciary obligations (Sunrise Specialty Co. Inc., et al. v. Scottsdale Insurance Co., No. 16-16856, 9th Cir., 2017 U.S. App. LEXIS 26860)....