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Insurance co. must defend policyholder in porn defamation suit

Last week, a federal judge in Delaware ruled that Liberty Mutual insurance company is obligated to defend one of their policyholders in a lawsuit. Magda Korn, ex-wife of former Korn band member and aspiring politician Richard Korn, faces charges filed by her ex-husband for defamation and negligence.

In 2013, while the couple was undergoing their divorce, Ms. Korn took a portable hard drive belonging to Mr. Korn and gave it to the police, claiming her ex was in possession of child pornography. More than 25 images were later found by police on Mr. Korn's personal computer, but prosecution was unable to prove he knew about said images. Mr. Korn then filed a lawsuit against her for loss of reputation and other damages.

In his lawsuit, Mr. Korn claims his ex-wife falsely accused him to try to gain leverage in the couple's divorce. He is suing for loss of reputation, lost wages and earning capacity, severe mental anguish, loss of relationship with his minor daughters and other damages.

Liberty Mutual argues that Ms. Korn's homeowners policy does not cover the defamation and negligence lawsuit filed against her in the state court. The federal judge disagreed, essentially claiming they were not acting in good faith toward the policyholder.

This case shows us the importance of understanding your insurance policy, as well as exercising your right to challenge the insurance company when they deny your claim. If your insurance company is acting in bad faith for any reason, contact an experienced attorney to discuss your options.

 

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