Brecek & Young Advisors, Inc. v. Lloyds of London Syndicate involved a claims made professional liability policy. The policy excluded coverage for interrelated wrongful acts paid under a previous policy. The insureds (Plaintiffs) were accused of churning accounts. The 10th Circuit reversed and remanded a summary judgment for Plaintiff. The trial court erred by finding that three arbitration claims were separate (and thus subject to separate retentions or deductibles) and not interrelated wrongful acts (subject to one deductible). The 10th Circuit found that there was a substantial factual nexus between the previous claims and the claims at issue. The insurer was estopped from denying coverage because it had full knowledge of the previous claims and waited three years to raise the issue. Because estoppel requires detrimental reliance, the matter was remanded to determine if there was any detrimental reliance.
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