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09-Feb-2019 00:45

The operative complaint’s recitation of interlocking control and oversight, implicates the doctrine of “willful blindness” so as to transmute the concept of “negligence” into one of volition.

Admiral directed the court to the following clause in the policy that it argued excludes coverage for the claims the State asserts in the operative complaint: The Wisconsin Court of Appeal concluded that there can be no doubt that the State’s operative complaint alleges a dishonest and fraudulent dating-services scheme.

The State’s operative complaint alleges a pervasive scheme to defraud Wisconsin citizens that violated multiple state statutes and regulations.

The defendants argue that the Admiral Insurance policy gives them coverage via this clause in the policy’s “insuring agreement”: “We will pay those sums that the insured becomes legally obligated to pay as damages by reason of any negligent act or error or omission in professional services rendered, or which should have been rendered, in the ‘coverage territory’ and during the policy period, by you, or by any other person for whose acts you are legally liable, arising out of the conduct of your business as described in the Schedule above.” Admiral does not dispute that the defendants are “insured[s]” under the policy and that the “business as described” and “‘coverage territory'” conditions are met.

The state also added to the charges because plaintiffs marketed their services to people older than 62.

The operative complaint alleges that Great Expectations is liable because “it directly committed the acts and practices that form the basis for the violations;” John Meriggi “had actual or constructive knowledge of, participated in, approved, ratified, endorsed, directed, or controlled or otherwise had the ability to control the illegal acts and practices that form the basis for this action;” John Meriggi is liable for the relief sought by the State because “he has had actual or constructive knowledge of, participated in, approved, ratified, endorsed, directed, or controlled or otherwise had the ability to control the acts and practices that form the basis for the violations;” Meriggi Management ” has had actual or constructive knowledge of, participated in, approved, ratified, endorsed, directed, or controlled or otherwise had the ability to control the illegal acts and practices alleged in the complaint;” Meriggi Management is liable for the relief sought by the State because “it has had actual or constructive knowledge of, participated in, approved, ratified, endorsed, directed, or controlled or otherwise had the ability to control the acts and practices that form the basis for the violations.” The defendants contended that Admiral Insurance had a duty to defend the State’s action and indemnify them for the relief the State seeks.

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