News

Mayer Achieves Significant Coverage Victory in the Northern District of Texas

The Mayer coverage team led by Rob Witmeyer recently obtained a significant win in favor of one of the firm’s clients, Arch Specialty Insurance Company. Arch issued a professional liability insurance policy to LPC Multifamily Holdco LLC d/b/a Lincoln Property Company. LPC was sued in multi-district litigation alleging price fixing and violations of federal and state antitrust laws.

LPC filed suit in federal court against Arch and the excess insurers seeking coverage for substantial defense costs/indemnity for the underlying lawsuits. LPC contended that the Arch primary policy provided coverage because a consumer protection laws exclusion did not preclude coverage. However, Arch contended that LPC did not satisfy its initial burden of proving that the underlying lawsuits triggered coverage under the Arch policy insuring agreement.

Judge Fitzwater agreed with our argument by finding the Arch insuring agreement did not provide coverage. Considering this ruling, the court did not need to address the policy exclusion issue. Ultimately, the court held that Arch has no duty to defend and no duty to indemnify LPC in the costly underlying lawsuits. This is another outstanding victory for our client and coverage team!