Medhi Ali V. Federal Insurance Isn't So Devastating

Law360, New York (June 17, 2013, 12:58 PM EDT) -- Recently, there has been much hand-wringing over the Second Circuit’s decision in Medhi Ali v. Federal Insurance Co., __ F.2d __ (2d Cir. 2013), in which the court declined to extend the holding of Zeig v. Massachusetts Bonding & Insurance Co., 23 F.2d 665 (2d Cir. 1928), to the specific facts of the case before it. Commentators are chalking it up as a major victory for insurers, claiming that policyholders have now lost a key precedent, one which had previously allowed them to argue that an...
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