La. Breach Exclusion Can't Bar Tort Coverage: 5th Circ.

Law360, New York (April 4, 2012, 6:47 PM EDT) -- The Fifth Circuit in a precedential decision ruled Wednesday that under Louisiana law, an insurer can't deny coverage to tort claims against an insured party tied to a breach of contract if the tort claim can stand apart from the breach.

A three-judge panel said it had been forced to predict state law because the Louisiana Supreme Court never had addressed the issue. In particular, the appeals court said it had weighed the relative merits of two tests Louisiana courts typically apply in deciding whether a...
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