Gordon & Rees Connecticut senior counsel Joseph J. Blyskal and associates Kelly M. Kirby and Andrew D. Bullard authored an article "Ill-Gotten Gains: Policy Language and Public Policy" published in the fall 2016 issue of In-House Defense Quarterly, a publication of the Defense Research Institute (DRI). All three attorneys are members of Gordon & Rees's Insurance Practice Group.
The article discusses the unique issues that arise from lawsuits that seek to recover wrongfully obtained profits or similar remedies, often referred to as "ill-gotten gains," under insurance policies because of the inherently intentional nature of the conduct and the "moral hazard" associated with insuring theft. The article summarizes the issues that typically arise in litigation and the most commonly cited cases addressing these issues. It also highlights very recent decisions demonstrating the application of the general analytical approach employed by courts in ruling on these issues, though there is no universally applicable approach to date.
In examining this area of the law, the authors explore the various terms and exclusions within insurance policies that may preclude coverage for intentional or criminal acts, such as fraud, and some policies that include specific exclusions for "ill-gotten gains." They also address how public policy weighs against insuring the return of money to which an insured was not entitled.
To read the article in full, please click here.
Joseph J. Blyskal is a member of the firm’s Insurance and Bad Faith, Employment Law, Commercial Litigation, and Tort and Products Liability practice sections. He has significant experience with commercial disputes and insurance matters, and has represented private business clients and closely-held companies, individuals, and institutional clients before administrative bodies and state and federal courts in all stages of litigation, including appeals.
Kelly Kirby is an associate in the Employment and Insurance practice groups in the Hartford office of Gordon & Rees. She has been involved in unique and complex coverage litigation issues involving national insurers, which stem from director and officer's errors and omissions, and CGL insurance policy disputes, including claims of bad faith.
Andrew D. Bullard is an associate with the Insurance practice group in the Hartford office of Gordon & Rees. He received his J.D., cum laude, from the University of Connecticut School of Law.