Utica Mut. Ins. Co. v. Herbert H. Landy Ins. Agency, Inc.

Utica Mutual Insurance Company (Utica) insured Herbert H. Landy Insurance Agency (Landy) under a professional liability insurance policy. The policy required Utica to defend Landy in lawsuits arising from Landy’s provision of professional services as an insurance broker and agent. CRES Insurance Services, LLC sued Landy in California state court, alleging negligence and that Landy engaged in unfair business practices. When Landy demanded that Utica defend it in the CRES lawsuit, Utica filed this action in federal district court seeking a declaration that CRES’s negligence claim did not trigger its duty to defend. The district court granted summary judgment to Landy. The First Circuit affirmed, holding (1) CRES’s complaint can be reasonably construed to allege a professional liability claim and is therefore covered by the policy; and (2) Utica failed to meet its burden of establishing that the policy’s exclusion for “unfair competition of any type” applies in this case. View "Utica Mut. Ins. Co. v. Herbert H. Landy Ins. Agency, Inc." on Justia Law