In that regard, the Court of Appeal noted Crown Capital’s responses to the questions on the Application as follows:Ĭoncerning Crown Capital's claims experience, question 9 of the application asked, “Have any claims, suits or proceedings (including without limitation: any shareholder action or derivative suit or any civil, criminal, or regulatory action, or any complaint, investigation or proceeding related thereto) been made during the past five years against: (a) the Applicant (b) its predecessors in business (c) any subsidiary or affiliate of the Applicant (d) any other entity proposed for coverage or (e) any past or present principal, partner, managing member, director, officer, employee, leased employee or independent contractor of the Applicant, its predecessors in business, any subsidiary or affiliate of the Applicant or any other entity proposed for coverage?” Paulsen answered that question, “Yes.”įurther concerning Crown Capital's claims experience, Question 10 of the application asked, “Is the Applicant (after diligent inquiry of each principal, partner, managing member, director or officer) aware of any fact, circumstance, incident, situation, or accident (including without limitation: any shareholder action or derivative suit or any civil, criminal, or regulatory action, or any complaint, investigation or proceeding related thereto) that may result in a claim being made against: (a) the Applicant (b) its predecessors in business (c) any subsidiary or affiliate of the Applicant (d) any other entity proposed for coverage or (e) any past or present principal, partner, managing member, director, officer, employee, leased employee or independent contractor of the Applicant, its predecessors in business, any subsidiary or affiliate of the Applicant or any other entity proposed for coverage?” Paulsen answered that question, “No.”
Endurance insurance company professional#
On April 20, 2010, Crown Capital executed an application for professional liability insurance from Endurance for a professional liability insurance policy for work performed by its security broker – dealers and investment advisors (“Application”). The letter advised that Crown Capital was obligated to pay for the loss sustained by Mr. Subsequently, a court appointed examiner filed a “final report of examiner” with respect to the operation of DBSI which concluded that it engaged in a fraudulent Ponzi scheme.Īs a result, on October 26, 2009, investor George Bou-Sliman sent a letter to Crown Capital which attached a summary of the final report. Such entity filed for bankruptcy on November 10, 2008. The parties’ dispute arose out of Crown Capital’s recommendation that investors invest money in real estate investments operated by an entity known as DBSI, Inc.
As a result of Endurance’s denial of Crown Capital’s tender of the subject claims, Crown Capital filed an action against Endurance alleging causes of action for reformation, breach of contract and bad faith.
Endurance denied Crown Capital’s tender of three claims based on negligent investment advice which were tendered by Crown Capital under a professional liability policy purchased from Endurance for the period of Apto April 1, 2011.
Endurance insurance company trial#
Co., 235 Cal.App.4th 1122 (April 10, 2015), the California Second District Court of Appeal affirmed the trial court’s entry of summary judgment in favor of Endurance American Specialty Insurance Company (“Endurance”) in connection with its denial of the defense of multiple claims based on erroneous investment advice provided by the insured, Crown Capital Securities, L.P. Endurance American Specialty Insurance Company
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