ACE American Insurance Company v. Guaranteed Rate, Inc.

Summary

The Court affirmed judgment for Guaranteed Rate on its coverage claims, holding that the Management Liability Policy’s professional-services exclusion did not bar coverage for losses arising from false certifications to the government under the False Claims Act. The Court reasoned that the government’s injury resulted from the false certifications, not from professional services provided to borrowers, and that the required causal linkage was therefore insufficient. The Court also affirmed judgment for ACE on Guaranteed Rate’s bad-faith claim because ACE had a reasonable, although ultimately unsuccessful, basis for denying coverage and the expert report offered primarily legal conclusions.