Law360 Highlights Hicks Thomas Fifth Circuit Victory in Ericsson Coverage Dispute

By Hicks Thomas LLP

Law360 recently covered a Fifth Circuit victory that Hicks Thomas partners J. Stephen Barrick and Courtney Ervin secured on behalf of Travelers Property Casualty Co. of America in a closely watched insurance coverage dispute involving telecommunications company Ericsson. 

In “5th Circ. Frees Ericsson Insurers In Terrorism Funding Row,” Law360 reports that the Fifth Circuit found Travelers and another insurer had no duty to defend Ericsson against claims alleging the company funded foreign terrorist organizations. 

The court rejected Ericsson’s argument that the underlying claims involved accidental conduct, finding instead that the complaints alleged the company knowingly made payments to terrorist organizations to protect its projects in conflict areas. 

“The complaints describe intentional conduct by the Ericsson entities,” the Fifth Circuit wrote. “Their payments to third-party contractors were volitional.” 

Read the full Law360 article, “5th Circ. Frees Ericsson Insurers In Terrorism Funding Row” (subscription required).