Between the Lines

A Discussion of Case Law and Statutory Law Affecting Commercial Lines of Insurance


No Coverage for Breach of Contract Claims

A frequently litigated issue is whether liability policies cover breach of contract claims.

In López v. Medina v. Marsh USA, Inc., et al., 2012 WL 229856 (1st Cir.), the First Circuit held on January 26, 2012, that the coverage provision found in most policies providing coverage (only) for those sums the insured is

“legally obligated to pay as damages”

means that liability policies respond to tort claims, not claims sounding in contract.  The opinion contains a good sampling of cases interpreting the phrase “legally obligated to pay as damages.”

Steven L. Schreckinger
(617) 621-6537

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Steve Schreckinger

Posted In: Contract Claims

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