9th Circ. Hands State Farm Win In D&O Fight Over Firing

By Bibeka Shrestha (April 16, 2014, 7:11 PM EDT) -- The Ninth Circuit ruled on Tuesday that State Farm General Insurance Co. Inc. did not have a duty to provide directors and officers coverage to a condominium homeowners association against a lawsuit claiming that its firing of a security guard was based on military service discrimination.

Upholding a lower court ruling, the Ninth Circuit said that State Farm did not have a duty to defend Forest Meadows Owners Association because there was no potential that allegations were covered under a condominium policy that provided D&O coverage.

"Established California law holds that this policy [language] reaches only negligent conduct," the Ninth Circuit...

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