LA Zoo Fundraising Arm Sued by RLI Insurer Over Endowment Case

The Greater Los Angeles Zoo Association was sued by an RLI Corp. unit in a dispute over insurance coverage stemming from a lawsuit the city filed against the group.

The city’s lawsuit alleges the zoo association breached contracts and fiduciary duties by refusing to relinquish control over the zoo’s $48.9 million endowment and other funds raised for the zoo’s benefit.

Exclusions in the association’s liability policy for professional services and breach of contract preclude coverage, RLI Insurance Co. said in its complaint filed Thursday in the US District Court for the Central District of California.

RLI is seeking a declaratory ...