Settlement may have mooted insurer's coverage dispute | North Carolina Lawyers Weekly
Posted August 1, 2026

The 4th U.S. Circuit Court of Appeals remanded a coverage dispute involving a Virginia Beach nightclub and its commercial general liability insurer. The nightclub settled the underlying models’ advertising lawsuit for $155,000 and assigned its policy rights, but the court said the district court must first decide whether the declaratory judgment action became moot. The panel declined to reach the duty-to-defend and indemnify issues until the jurisdictional question is resolved.
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