USM Corp. v. First State Insurance

We granted the defendant insurers’ application for further appellate review to consider their claim that the “Consultants Errors & Omissions” policies they issued to Arthur D. Little Systems, Inc. (ADLS), do not cover losses that ADLS incurred as a result of a judgment in an action that USM Corporation (USM) brought against ADLS. The circumstances of that underlying case are set forth in USM Corp. v. Arthur D. Little Sys., Inc., 28 Mass. App. Ct. 108 (1989). The Appeals Court there held that ADLS was in breach of an express warranty contained in an agreement in which ADLS agreed to develop…