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ARTICLE · 20 DECEMBER 2023

Court Rejects Assumption That Wrongful Acts Are Related Based On Inclusion In Single Complaint

The United States District Court for the Central District of California, applying California law, has held that, based on the initial pleadings...

United StatesInsurance

The United States District Court for the Central District of California, applying California law, has held that, based on the initial pleadings, it could not determine in the insurer's favor whether wrongful acts alleged after a policy's retroactive date were related to wrongful acts alleged prior to the policy's retroactive date under the policy's interrelated wrongful acts provision. Gilderman v. Argonaut Ins. Co., 2023 WL 5506019 (C.D. Cal. July 10, 2023).

After he was appointed Trustee of the Miranda St. Trust (the Trust), the insured purchased a professional liability policy for actions taken in his capacity as Trustee. The policy provided coverage for claims first made and reported during the policy period "arising out of a Wrongful Act committed before the end of the Policy Period and on or after the Retroactive Date." "Wrongful Act" was defined as "any actual or alleged act, error, omission or breach of duty by any Insured in the rendering of or failure to

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