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Errors & Omissions Results

Technology Errors & Omissions Case Results

At Pillsbury & Coleman, LLP, our trial attorneys have represented high-tech firms involved in disputes over errors and omissions insurance coverage. Past clients in cases involving technology errors and omissions have included Quantum Corporation, eBay, Inc., Nortel Networks, Metawave Corporation, Hitachi, VeriFone Inc., Westwave Communications, Aspect Communications Corporation, and Evans & Sutherland Computer Corporation, as well as other high-tech firms.

Technology Company v. Insurance Company

Case Issue

Technology Errors and Omissions Claim

Result

Won Phase I of trial (obtaining ruling of first impression in California) and multi-million dollar settlement before Phase II of trial.

Summary

Our client designed and manufactured a hardware system used to train pilots. Our client was sued for failing to meet the specifications of a sales agreement and chose to waive millions of dollars of invoices in exchange for a dismissal. The client tendered the waiver of invoices for reimbursement to its insurer. The insurer responded that a waiver was not equal to damages under the policy and it would not reimburse our client. There were no cases in California on this point at the time. We obtained a ruling of "first impression" that a waiver of invoices can be damages where the term is undefined by the policy.

California Law Firm v. Insurance Company

Case Issue

Insurer refused to defend insured law firm against malpractice suit and rescinded law firm's policy; our client sued for breach of duty to defend and bad faith

Result

Insurer reinstated policy and made partial payment towards settlement of malpractice suit.

Summary

Insurance company rescinded client's professional errors and omissions policy stating that the client had made a material misrepresentation on its policy application about a potential claim. Our client was a small law firm in Southern California that was hit with a malpractice lawsuit. After the firm tendered the claim, the insurance company rescinded its policy, refused to defend the claim and sued the firm for declaratory relief. We resolved the malpractice suit by convincing the insurance company to pay towards a settlement and persuaded the insurance company to withdraw its rescission of the policy.

Tough Negotiators, Passionate Litigators

To discuss your insurance-related concern, contact Pillsbury & Coleman, LLP. From our law offices in San Francisco, we represent clients throughout California and across the nation.