California Panel Affirms No Coverage For Suit Over Alleged Tax Avoidance Scheme

Mealey's (May 11, 2018, 2:24 PM EDT) -- RIVERSIDE, Calif. — A California appeals panel on May 8 found that an underlying complaint failed to allege a claim against an insured arising from a wrongful act in its rendering of professional services that are "solely related" to a covered product, affirming a lower court’s ruling that an errors and omissions insurer has no duty to defend or indemnify against the underlying suit (Lindsey Financial, Inc. et al. v. American Automobile Insurance Company, No. E067037, Calif., App., 4th Dist., Div. 2, 2018 Cal. App. Unpub. LEXIS 3164)....