The United States District Court for the Southern District of California, applying California law, granted an insurer’s motion for summary judgment, finding that a Claim for sexual harassment by an employee was made during an earlier policy period and not timely reported. AV Builder Corp. v. Houston Cas. Co., 2022 WL 2168075 (S.D. Cal. Mar. 22, 2022). The Court reasoned that emails negotiating a release of the employee’s claims against the company, which included sexual harassment, in exchange for a monetary payment was sufficient to constitute a Claim within the meaning of the company’s employment practices liability insurance policy.
A mold remediation company purchased claims-made-and-reported employment practices liability insurance policies for the Policy Periods August 19, 2017 to August 19, 2018 (the “2017 Policy”) and August 19, 2018 to August 19, 2019 (the “2018 Policy”). The company’s president was having an affair with an employee that she broke off in April 2018. The president responded by immediately sending her an email regarding her purported “resignation.” Over the next few months, the president and the employee exchanged emails about her departure from the company. On August 1, 2018, the employee sent a list of proposed changes to a draft severance agreement, which provided for a net payment of $400,000 in exchange for a release of claims against the company, including those arising under Title VII of the Civil Rights Act of 1964. On August 14, 2018, the...
"Breaking news: Sri Lanka has been removed from the United Nations," says superimposed Sinhala-language text on a Facebook graphic shared on September 25, 2026 The graphic also features a photo of...