Missouri Court Strikes Down Cyber Insurance Choice-of-Law Provision

A federal court has rejected various insurers’ motion to strike a claim under Missouri state law for “vexatious refusal” to pay the insured plaintiff’s cyber attack claims. The insurers argued that, because the policies’ choice-of-law provision specified New York law, and because New York law did not recognize a cause of action for “vexatious refusal,” the plaintiff could not proceed under that claim. However, the court ruled that depriving the plaintiff its claim under Missouri law would contravene public policy and refused to enforce the provision on that ground.

The case is Maritz Holdings v. Certain Underwriters at Lloyds, Case No. 4:18-CV-00825 in the United States District Court for the Eastern District of Missouri. You can read the decision here.