Here's the deal. Amber had a $1 million liability policy with New York Marine and General Insurance Co. The policy covers all sorts of wrongful conduct, including defamation ... but there's a catch.
The governing law for the insurance policy is California, and under California law, an insurance company is not on the hook if the insured (Amber) committed wrongful, "WILLFUL" misconduct. New York Marine says not only did the jury find the defamation Amber committed was willful, it was malicious.
So, the insurance company wants a declaration from the judge that based on the policy and the law, it's not responsible to foot part of Amber's bill. Fact is ... a million dollars is a lot, but Amber's on the hook for more than $8.3 million.