4th Circ. Fuels Voluntary Payment Clause Enforcement Trend

Law360, New York (January 8, 2014, 5:44 PM EST) -- On Dec. 16, 2013, the United States Court of Appeals for the Fourth Circuit decided Perini/Tompkins Joint Venture v. ACE American Insurance Company,[1] a case that provides a useful remainder of the important differences between notice provisions and voluntary payment provisions in general liability insurance policies. In Perini, the court, applying Maryland and Tennessee law, affirmed the district court’s grant of summary judgment for general liability insurer when the policyholder settled an underlying construction defect claim without consulting or obtaining the approval of its insurer....
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