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Prophet Equity LP v. Twin City Fire Insurance Co.

Court: Tx 5-Dallas  08/19/2019  Court of Appeals Reverses Judgment for Insurer in Wrongful Employment Practices Dispute, Rendering $4M+ Judgment for Insured

The court determined that the trial court erred in finding that the insured was not entitled to coverage for the claims asserted against it by a former employee, holding that the "insured v. insured" exclusion did not apply to wrongful employmnet practices claims, and the "dishonesty" exclusion did not apply because the arbitration award did not specify that the excluded conduct was the cause of the awarded damages. The insurer also failed to carry its burden to show that the insured did not properly allocate between covered and uncovered damages. The court, however, agreed that the insurer had not breached a confidentiality agreement.

employment practices liability policy, duty to indemnify, losses, wrongful employment act, insured v. insured exclusion, wrongful employment practices exception, reimbursement, defense costs, claim, dishonesty exclusion, final adjudication, allocation,

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