Hollinger Inc. v. American Home Assurance Co.

Reasons for Decision

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Civil procedure — Costs — Assessment or fixing of costs — Whether amount fair and reasonable — Two primary insurers who tendered joint limits of $50 million to fund derivative action against Hollinger in Delaware awarded $100,000 and $120,000 in costs, respectively — Primary insurers achieved most success, while excess insurers achieved some lesser success — Amount of costs awarded were less than costs sought, but still substantial and fair.

Determination of costs payable to two primary insurers, Chubb and American Home, who tendered joint limits of $50 million to fund derivative action settlement brought against Hollinger in Delaware — Parties agreed partial indemnity scale was appropriate — Chubb claimed fees of $187,423, disbursements of $6,795 and applicable GST — American Home claimed fees of $357,352, disbursements of $11,650 and applicable GST — Excess insurers complained there was avoidable duplication between applicants and primary insurers, and that significant amount of time was spent on matters not relating to them — HELD: Chubb awarded total of $100,000 and American Home entitled to total of $120,000 — Participation of excess insurers was necessary and appropriate — All partied acted responsibly and efficiently in bringing complex set of applications — Elements of duplication were necessary due to varying interests of applicants — Largest measure of success was achieved by primary insurers and Hollinger — Excess insurers achieved some measure of success after being placed in difficult position — While awards were less than amounts claimed, they were substantial and fair.

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Reference Info:Decision | State, D.C. Circuit, D.C. | United States


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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