RealPage: U.S. District Court finds Funds lost by Third Party Payments Processor do not meet Commercial Crime Policy’s Ownership Condition
In the recent decision of RealPage Inc. v. National Union Fire Insurance Company of Pittsburgh, Pa,, the U.S. District Court for the Northern District of Texas held that funds lost by a third party payments processor as a result of a phishing scheme perpetrated on an insured did not meet the commercial crime policy’s ownership condition. The Court found that the “hold” requirement of the condition requires possession of funds, as opposed to the ability to direct the movement of funds. The Court also held that RealPage’s after-the-fact reimbursements to its clients did not constitute a “direct loss” under