AIG Specialty Insurance Company v. Conduent State Healthcare, LLC

Summary

The Court affirmed the Superior Court’s post-trial rulings in an insurance-coverage dispute. It held that the fraud exclusion did not bar indemnity coverage for a settlement allocated to covered breach-of-contract claims, and that the insurers’ established breach of the duty to defend excused Conduent from contractual cooperation and consent-to-settlement obligations. The Court also held that the Superior Court acted within its discretion in ordering a new trial because evidentiary errors, violations of pretrial rulings, and potentially inconsistent verdicts produced an unfair and confused trial.