March 18, 2010
Written By Attorneys: Claudia D. McCarron and Paulyne A. Gardner-Smith
This article is an interpretation of current law and is offered for informational purposes only. This material is not legal advice and should not be construed or used as a substitute for the advice of an attorney.
On March 15, 2010, the Fifth Circuit Court of Appeals held that two insurers were required to continue to pay defense costs for five Stanford executives until there was a determination whether or not each policy's money laundering exclusion applied, affirming in part a prior decision of the District Court. The Fifth Circuit also concluded that, contrary to the District Court's decision on this issue, Texas' eight corners rule did not apply, since the language of the policy allowed for the use of extrinsic evidence in determining the exclusion's application. Pendergest-Holt v. Certain Underwriters at Lloyd's of London, 2010 WL 909090 (5th Cir. March 15, 2010). For a full discussion of this case, please see the attached article. Read article.
