Fifth Circuit Holds Carve-Back Provision Could Not Overcome Breach of Contract Exclusion for Louisiana Wage Payment Act Claim

The United States Court of Appeals for the Fifth Circuit, applying Louisiana law, has held that a breach of contract exclusion barred coverage for a judgment awarded to two employees who were not paid severance as required under their employment agreements, concluding that a carve-back to the exclusion did not apply because the insured’s liability would not have existed but for the employment agreements....
By: Wiley Rein LLP

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