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Sarah Cornwell helps insurance clients navigate complex coverage issues across all 50 states.  With in-house experience during a secondment with a Bermuda excess insurer, Sarah understands the needs and worries of insurance clients and how best to help them respond to an ever-changing landscape. In the courtroom, Sarah is determined to achieve the best results for her clients, and vigorously represents their interests in both coverage and bad faith actions.

The Southern District of New York recently addressed a “Wrongful Employment Practices Act” exception to an Insured versus Insured (“IVI”) exclusion in In re Seabury FxOne LLC v. U.S. Specialty Ins., No. 21-cv-837, 2023 U.S. Dist. LEXIS 31255 (S.D.N.Y. Feb. 24, 2023). In 2015, the CEO of Seabury FxOne LLC (“Seabury”) issued a demand letter alleging corporate misconduct and interference with the CEO’s ability to perform. Soon after the initial demand letter, the CEO resigned, arguing constructive discharge and retaliation as he allegedly had been cut off from critical information. Additional demand letters were exchanged and an unsuccessful mediation occurred, with the CEO ultimately initiating arbitration in August 2018 against Seabury and several related entities. By that point, the CEO’s allegations had evolved so the arbitration demand focused on dilution of the CEO’s shares, while the earlier demands focused on alleged wrongful termination and retaliation.Continue Reading Southern District of New York Holds Employment Practices Wrongful Act Exception to an Insured Versus Insured Exclusion Applied To Former CEO’s Claims, but That an Allocation Was Required