9th Circ. Revives Office Depot's Coverage Battle With AIG

By Jeff Sistrunk (May 21, 2018, 7:14 PM EDT) -- The Ninth Circuit on Monday revived Office Depot Inc.'s bid to force an AIG unit to cover its costs in a suit alleging it violated the California False Claims Act by overbilling public agencies, rejecting a lower court's conclusion that claims brought under the CFCA are innately subject to a state law barring insurance for deliberate wrongful conduct.

In a brief unpublished opinion, a three-judge panel of the appeals court reversed U.S. District Judge Stephen V. Wilson's rulings accepting the argument by AIG Specialty Insurance Co. that California's Insurance Code Section 533 — which precludes coverage for a policyholder's willful acts...

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