Prior Knowledge Exclusions in Excess Policies Bar Coverage of Legal Malpractice Claims

In Executive Risk Indem. Inc. v. Pepper Hamilton LLP, 2009 WL 3347222 (N.Y.), the Court of Appeals of New York was asked to determine, under Pennsylvania law, whether excess insurers Executive Risk Indemnity Inc. and Twin City Fire Insurance Company, based upon their prior knowledge exclusions, and Continental Casualty Company, based upon rescission of its policies, were entitled to summary judgment declaring that they had no obligation to indemnify defendants Pepper Hamilton LLP and one of its members, W. Roderick Gagné, in actions asserted against them for, among other claims, professional malpractice.