Office of the Special Deputy Receiver v. Hartford Fire Insurance Company

Plaintiff filed a lawsuit seeking a declaratory judgment and alleging breach of contract against the insurance company it contracted with to provide fraud insurance. The insurance company had denied the plaintiff’s claim after it suffered losses it incurred when hackers gained access to the company CFO’s email account. The district court agreed with the insurance company’s interpretation of the insurance policy and dismissed the plaintiff’s lawsuit. The Seventh Circuit affirmed, finding that the contract unambiguously excluded coverage resulting from loss or transferred funds in reliance on fraudulent instructions sent by email. (BRENNAN and LEE, concurring)