Malicious Prosecution and Insurance Coverage

The Eighth Circuit recently considered when the tort of malicious prosecution occurs regarding personal injury coverage in a general liability policy.  In construing Iowa law, the court followed the majority rule that the tort occurs when the case was prosecuted, not at the time any convictions are overturned.  At J.D. Supra, the law firm of Traub Lieberman Strauss & Shrewsberry LLP comments:

In reaching its decision, the court considered and rejected the insured’s argument that the Genesis policies were triggered based on allegations of “continuing misconduct and continuing personal injury” through the time underlying plaintiffs were released from prison.  The court refuted the contention that “the tort of malicious prosecution constitutes a continuing injury,” and concluded instead that a claim for malicious prosecution does not trigger multiple policies, but instead triggers only the policy in effect at the time the charges are filed.

The case is Genesis Ins. Co. v. City of Council Bluffs, et al., 2012 U.S. App. LEXIS 9577 (8^th Cir. May 11, 2012); the full column at J.D. Supra is here.

--CJR