We are pleased to announce that Tressler attorneys Michael R. Delhagen and Kiera Fitzpatrick successfully prevailed on summary judgment in the U.S. District Court for the Northern District of California, securing a complete victory for our insurer client in a hard-fought coverage dispute.

The defendants, a retirement plan management company, agreed in 2018 to pay a $40 million settlement arising from alleged wrongful acts involving participants in a church’s retirement plan. Rather than pay the settlement costs themselves, the defendants now sought coverage from our insurer client. The central issue was whether the Prior Acts Exclusion in the primary policy barred coverage for the underlying claims and settlement.

The ruling turned on two key issues that our team briefed and argued: whether allegations alone can establish Interrelated Wrongful Acts, and what is required for conduct to be “causally connected” across a prior acts date. The Court agreed with our position on both issues. It granted our motion for summary judgment in full and denied the insured’s motion for partial summary judgment, holding that the policy’s Prior Acts Exclusion barred coverage for the claims in their entirety. The Court’s ruling in favor of our client provides a significant victory on this critical coverage issue.

Congratulations, Michael and Kiera, on a well-deserved victory!

About Michael R. Delhagen

Michael is a professional liability insurance coverage attorney whose practice includes directors and officers liability, financial institutions professional indemnity, lawyers professional indemnity, general partnership liability, and private equity fund and management liability insurance. Mr. Delhagen has worked as coverage and monitoring counsel for clients in the U.S., Bermuda, and London insurance markets for 28 years. Michael is a recognized attorney in his field, having served as coverage and monitoring counsel in matters such as In re Enron Corporation Securities Litigation, In re WorldCom Corporation Securities Litigation, and In re Mutual Funds Investment Litigation. Michael has litigated significant coverage disputes in state and federal courts and has participated in coverage arbitration before the American Arbitration Association, in matters including In re HealthSouth Corporation Securities Litigation, In re Merck & Co., Inc. Securities, Derivative and ERISA Litigation, and In re Clarent Corporation Securities Litigation.

About Kiera Fitzpatrick

Kiera is an associate in the Insurance Practice Group at Tressler LLP, where she represents insurers in complex coverage and litigation matters in state and federal courts throughout New York, New Jersey, and across the country. Kiera regularly advises insurers on high-exposure and multifaceted coverage issues and represents clients in both litigation and non-litigation matters. She is experienced in drafting coverage position letters, pleadings, dispositive motions, discovery materials, and settlement agreements, and frequently advocates for clients in depositions, mediations, and other dispute resolution proceedings. Her practice is driven by a strategic, detail-oriented approach focused on achieving efficient and favorable outcomes for her clients.

About Tressler LLP

Headquartered in Chicago, with ten offices located in six states, Tressler LLP is a national law firm comprised primarily of attorneys who devote their practice to the representation of the insurance industry in coverage analysis and resolution, litigation, underwriting consultation, product development, claims management, and reinsurance.

In addition, Tressler has one of the most experienced and multi-faceted government law practices in Illinois, and has attorneys who represent clients in commercial litigation, defense litigation, corporate transactions, employment law and litigation, intellectual property, and condominium and common interest community association law.

For more information, please visit www.tresslerllp.com.