No Duty Under D&O Policy To Indemnify Breach Of Collective Bargaining Agreement

I had a subrogation case picked out to blog about, and then I remembered that when someone says the word “subrogation” even the coverage lawyers start to go to sleep. I’ll hold onto that case for another day and maybe mix it in with something a little more caffeinated.
Instead, let’s consider Union Mutual Fund v. Ulico Casualty Co., 2006 WL 561235 (S.D.N.Y. March 1, 2006). The court found that a Directors and Officers Liability policy that insured three labor/management trust funds did not cover damages for the funds’ failure to abide by the terms of a collective bargaining agreement (CBA). The D&O policy covered negligent acts and breaches of fiduciary duty, the court said, but the violation of CBA terms is akin to a breach of contract and is uncovered.

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