Amber Heard lost her appeal in a case claiming the insurer that paid part of her defense costs in the defamation suit brought by her ex-husband, Johnny Depp, breached its duty to defend her.
Heard has argued that New York Marine & General Insurance Co. breached its policy by refusing to appoint independent counsel, but the US Court of Appeals for the Ninth Circuit shot down the claim in an unpublished Monday opinion.
New York Marine wasn’t required by the policy to cover the cost of independent counsel, and the insurer fulfilled its duty to defend by continuing to appoint the firm Heard originally retained, Cameron McEvoy PLLC, the opinion said.
Heard’s other claim, that the insurer breached an implied covenant of good faith and fair dealing, also failed because her allegations didn’t establish that the insurer withheld benefits due under the policy, the court ruled, affirming the lower court’s dismissal.
The insurance carrier sued Heard in California federal court in 2022 seeking declaratory judgment on its coverage duties to Heard in the defamation case. The US District Court for the Central District of California dismissed Heard’s counterclaims against the insurer, and dismissed the coverage action as moot. Heard appealed, and New York Marine cross-appealed, but the Ninth Circuit affirmed the lower court on both issues.
A jury in 2022 awarded Depp $10 million in compensatory damages and $5 million in punitive damages. Both sides dismissed their appeals later that year to settle the high-profile dispute, and one of Heard’s other insurers—a Travelers Cos. unit—paid Depp $1 million as part of the deal.
New York Marine said it paid Travelers over $600,000 for its share of the defense, according to the Ninth Circuit ruling.
Ninth Circuit Judges Andrew D. Hurwitz and Roopali Desai were on the panel, and Second Circuit Judge Barrington D. Parker sat by designation.
Musick, Peeler & Garrett LLP represents New York Marine. Pasich LLP represents Heard.
The case is New York Marine & General Ins. Co. v. Heard, 9th Cir., No. 23-3399, unpublished 11/25/24.