Join us for a conference call to discuss Universal Cable Productions v. Atlantic Specialty Ins. Co., No. 17-56672 (9th Cir. July 12, 2019).

Dial In: 800-848-5704
Code: 6174397556#

As part of ACCC’s mission to be a thought-leader in the field of insurance and bad faith law, we are inaugurating what we will hope be a series of spirited, open-ended discussions concerning cases and other developments that seem likely to have a significant impact on the future shape of the law.

“War” exclusions are among the more obscure provisions in property and liability insurance policies, yet their jurisprudence dates back to the Civil War (See everycrsreport.com/reports/RL31166.html). Coverage disputes involving “war” exclusions resurfaced during the spate of airline hijackings in the 1970s and then again after 9/11.

While the issue has until recently faded from sight, it has gained renewed urgency with the advent of cyber-warfare and terrorist attacks around the globe. In a world where violent conflict can be waged without a known adversary and without territorial boundaries, do the traditional Clausewitzian concept of “war” still hold.?

In Universal Cable, the Ninth Circuit recently ruled that two war exclusions did not preclude coverage for financial losses that a TV production company suffered when it had to shut down shooting and move out of Jerusalem after a series of Hamas rocket attacks. In a lengthy opinion considering the history of war exclusions in insurance policies and the claimed “custom and usage” of such terms, the Ninth Circuit found that as “war” is viewed by insurers as meaning a conflict between governments, these exclusions did not encompass attacks by a terrorist organization.

Early appellate decisions in a new area of the law often have an outsized impact (viz. Jackson Township, NEPACCO and Keene). Will this prove true with Universal Cable? Will insurers adopt new exclusions to confirm their policies to modern conceptions of “war”? And what effect will this new ruling have on the pending coverage litigation between Zurich American and Mondelez in Chicago with respect to whether the $10 billion “NotPetya” cyber-attacks was an “act of war”?

Please join us for this inaugural ACCC discussion call.

We are looking for 2-3 Fellows to help present the case and guide our discussion. If you would like to volunteer, please email ACCC President Mike Aylward at [email protected].