Judge: No Coverage For Claims Involving Alleged Fraudulent Real Estate Scheme

Judge: No Coverage For Claims Involving Alleged Fraudulent Real Estate Scheme

BECKLEY, W.Va. - An errors and omissions insurer has no duty to defend or indemnify against underlying claims that its insureds participated in a fraudulent scheme to purchase real estate at an inflated price, a West Virginia federal judge ruled July 1, granting the insurer's motion for a default judgment (American Automobile Insurance Co. v. John P. Smith, et al., No. 5:12-cv-08183, S.D. W.Va.; 2013 U.S. Dist. LEXIS 91763).

Find full version on lexis Advance®
Access this news story on lexis.com®