Probation Co. Can Seek Coverage Of $14M Extortion Suit Deal

Law360 (July 10, 2019, 7:13 PM EDT) -- A Delaware judge said Tuesday that Illinois Union Insurance Co. must face probationary services company Providence Service Corp.'s bid for coverage of a $14 million class action settlement that resolved allegations it extorted illegal fees from probationers.

Illinois Union, which had issued Providence an excess professional liability policy for a period spanning from 2015 to 2016, denied coverage for the company's settlement of the underlying class action on the grounds that the case shared common facts with an earlier suit filed against Providence before the insurer's policy took effect. According to the insurer, the overlap between the two cases triggered a...

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