Panel: Failure To Request Written Consent Before Settlement Negates Coverage

Mealey's (January 20, 2017, 12:32 PM EST) -- PASADENA, Calif. — The Ninth Circuit U.S. Court of Appeals on Jan. 19 found that a lower federal court properly applied California law in finding that a bank insured breached its professional liability insurance policy by failing to request or obtain the insurer’s written consent before executing a settlement in an underlying mortgage loan dispute (OneWest Bank, FSB, v. Houston Casualty Co., No. 15-55579, 9th Cir.; 2017 U.S. App. LEXIS 993)....