The Hanover Ins. Co. v. R.W. Dunteman Co.

Dist. Ct. did not err in granting judgment in favor of plaintiff-insurance company in action seeking declaration that it did not have duty to either defend or indemnify defendants-two companies and four officers of said companies under 2018 “claims made” insurance policy that required defendants to notify plaintiff of claim during period of time covered by policy, where plaintiff asserted that defendants had failed to timely notify plaintiff of underlying lawsuit, where defendants were sued for diluting underlying plaintiff’s ownership interest in said companies. Record showed that: (1) all six defendants were named insureds in consecutive one-year claims-made policies issued by plaintiff in 2017 and 2018; (2) underlying plaintiff filed original complaint in August of 2017 during life of 2017 policy, alleging that one of said companies, through actions taken by instant four individual defendants wrongfully diluted underlying plaintiff’s ownership interest in said company; (3) underlying plaintiff filed amended complaint in 2018 that alleged same dilution claim, but broadened factual allegations by adding as defendants second company and instant four individual defendants; and (4) defendants notified plaintiff of instant lawsuit one week later, seeking coverage under 2018 policy. Dist. Ct. could properly find under language of policy that 2017 and 2018 lawsuits were “related claims,” and that operative date of claim for notice purposes was in August of 2017. As such, instant 2018 notice of lawsuit was untimely, since amended complaint did not commence new and distinct claim that was first made in 2018.