Trade Usage Evidence Could Be Relevant, Panel Says In Insurer’s Reimbursement Suit

Mealey's (May 19, 2020, 11:55 AM EDT) -- PASADENA, Calif. — The Ninth Circuit U.S. Court of Appeals on May 7 held that a lower federal court erred in rejecting defendants’ expert testimony regarding trade usage in the technology start-up industry as “arguably irrelevant under California law,” remanding an insurer’s lawsuit alleging that it is entitled to the recoupment of the $5 million it paid for underlying defense costs because the insured made material misrepresentations on the business and management indemnity insurance policy (Scottsdale Insurance Company v. Computer Sciences Corporation, et al., No. 19-55249, 9th Cir., 2020 U.S. App. LEXIS 14581)....