⚖ Oral Arguments, with Context

The U.S. Court of Appeals for the Fourth Circuit hears Peerless Indemnity Insurance Company versus Tilma, Incorporated. In an earlier lawsuit, a woman alleged that sex traffickers exploited her from 2012 to 2014 at a Chesapeake, Virginia hotel operated by Tilma. She alleged the hotel ignored warning signs; that lawsuit later settled. Tilma's insurers then asked a federal court to declare that their policies required neither a legal defense nor payment of the settlement. The district court disagreed, finding that the policy's coverage for false detention or imprisonment could apply to the allegations. The appeal asks whether the allegations trigger a duty to defend and, separately, whether the insurers must pay the settlement. Under Virginia law, a potentially covered allegation can trigger a defense even if liability has not been proved.

Peerless Indemnity Insurance Company v. Tilma, Inc. (No. 25-1980) — U.S. Court of Appeals for the Fourth Circuit, argued September 15, 2026.