ADI Worldlink, LLC v. RSUI Indemnity Co., No. 17-41050 (5th Cir. 2019)
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The Fifth Circuit affirmed the district court's judgment in an action where the insurance company denied the policyholder's claims under a directors and officers liability policy. The district court held that the insured had learned of a related claim when the previous year's policy was in effect. Therefore, under clear policy provisions, the first policy was the one to cover all of the claims.
The court affirmed and held that the 2015 claims arising from lawsuits that were related to the others brought in 2014 were governed by the earlier policy. Therefore, the absence of timely notice meant the claims were properly denied. For the same reasons, the court held that there was no relief to Worldlink under the Texas Prompt Payment Claim.
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