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Turner v. The Cincinnati Insurance Co.

Court: WD Tx  03/12/2020  District Court Rules that Third-Party Claimants Lack Standing to Sue for Coverage following Default Judgment

Claimants took a default judgment against defendant's insured following insured's bankruptcy and settlement and release by the bankruptcy trustee of related claims, but a Court of the Northern District held that the claimants lacked standing to sue for coverage under insured's commercial general liability policy absent a valid assignment or a judgment by adversarial trial. And, in any event, the court found that coverage did not exist under the claims-made policy because it was not a "claim" first made during the policy.

commercial general liability policy, default judgment, bankruptcy, settlement of claims, judgment creditor, assignment of claims, adversarial trial, standing, claims-made, interrelated wrongful acts, eight-corners rule, duty to indemnify

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