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Sued Company Waited|Too Long to Tell Insurer

(CN) - A company waited too long to inform its insurance company that it was being sued, the D.C. Circuit ruled.

An employee sued the American Center for International Labor Solidarity for discrimination. Federal Insurance Co. denied coverage.

Federal Insurance claimed its policy stated that the American Center for International Labor Solidarity (ACILS) should have notified it when the employee filed charges with the Equal Employment Opportunity Commission, rather than waiting until the beginning of litigation.

After ACILS settled with the employee, the company sued Federal for reimbursement.

Judge Tatel agreed with the district court that ACILS waited too long to notify Federal.

"We see no ambiguity in whether a Commission investigation qualifies as a formal administrative or regulatory proceeding," the judge ruled.

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