In its recent decision in Pa. Gen. Ins. Co. v. Thakur, 2014 U.S. Dist. LEXIS 110251 (D. Conn. Aug. 11, 2014), the United States District Court for the District of Connecticut had occasion to consider whether a claim for negligent misrepresentation can trigger a duty to defend.
Pennsylvania General insured Urmila Thakur under a homeowners’ policy containing a third-party liability coverage part applicable to bodily injury and property damage arising out of an “occurrence.” The policy defined “occurrence” as “an accident, including continuous or repeated exposure to substantially the same general harmful conditions, which results, during the policy period” in bodily injury or property damage. Additionally, the policy contained an exclusion applicable to injury resulting from intentional acts or omissions, or criminal activity.
Thakur was named as a defendant, along with other members of her household, relating to a fraudulent business run out of her home involving preparation of tax returns. While her husband and daughter were found guilty of, or plead guilty to, federal crimes, Thakur was not prosecuted. She was, however, named as a defendant in underlying civil suits relating to the fraudulent scheme.
Pennsylvania...
