News & Analysis as of

Summary Judgment D&O Insurance

Wiley Rein LLP

Connecticut Court Holds Restitutionary Settlement Not Insurable Loss

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The Superior Court of Connecticut, applying Connecticut law, granted an insurer’s motion for summary judgment, finding that a D&O policy did not afford coverage for a settlement that resulted in a consent judgment against the...more

White and Williams LLP

NJ Court Reaffirms Rule Against Coverage for Faulty Workmanship Claims and Finds Fraud Claims Inherently Intentional

White and Williams LLP on

Awarding summary judgment to an insurer under both liability and directors & officers (D&O) coverage parts, a New Jersey trial court reaffirmed the principle that claims of defective workmanship without resulting “property...more

White and Williams LLP

First Circuit: Broad Definition of Claim Precludes Coverage for an SEC Investigation Formal Order Received in a Prior Policy...

White and Williams LLP on

On March 20, 2020, the U.S. Court of Appeals for the First Circuit affirmed a summary judgment ruling by the U.S. District Court for the District of Massachusetts in favor of two excess D&O insurers, Zurich Services...more

Carlton Fields

Is Your “Securities Claim” Actually Covered Under Your D&O Policy? A Review of In Re Verizon Insurance Coverage Appeals

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The question of what constitutes a “securities claim” in the context of public company D&O policies is often debated in insurance coverage disputes, and the answer to this question can have significant effects on the scope of...more

Carlton Fields

Look No Further Than the Insuring Clause: Ill-Gotten Gains Do Not Constitute Covered “Loss”

Carlton Fields on

On August 26, 2019, the Eleventh Circuit Court of Appeals, applying Florida Law, held that ill-gotten gains do not constitute covered “loss” within the meaning of a D&O policy. In Philadelphia Indemnity Insurance Co. v. Sabal...more

Pillsbury - Policyholder Pulse blog

Delaware Court Adopts Pillsbury Theory that Shareholder Appraisal Actions Are Covered Securities Claims Under D&O Policies

Pillsbury secured an important victory for its client, Solera Holdings Inc., when Delaware Superior Court Judge Abigail LeGrow held—in a matter of first impression anywhere in the country—that a shareholder appraisal action...more

Pillsbury - Policyholder Pulse blog

Second Circuit Misinterprets D&O Policy Warranty Letter

When adding new or additional layers to an insurance program, policyholders are often asked to sign a “warranty letter” providing comfort to the prospective insurer that the policyholder is not aware of impending claims....more

Carlton Fields

Six Degrees Of Separation: Eleventh Circuit Upholds a Broad ‘Related Claims’ Provision

Carlton Fields on

“Related Claims” provisions in directors and officers (D&O) and errors and omissions (E&O) policies, while common, can spawn disagreement as to scope and application. ...more

A&O Shearman

Superior Court Of Delaware Rules That Delaware Public Policy Does Not Prohibit Indemnification For Breach Of Duty Of Loyalty Based...

A&O Shearman on

On March 1, 2018, Judge Eric M. Davis of the Superior Court of the State of Delaware denied in part and granted in part the summary judgment motion brought by plaintiff-insurers, which provided directors and officers...more

A&O Shearman

New Jersey Federal Court Extends Coverage of Merged Bank's D&O Liability Insurance Policy To Surviving Bank

A&O Shearman on

On September 18, 2017, Judge John Michael Vazquez of the U.S. District Court of New Jersey granted summary judgment in favor of plaintiffs BCB Bancorp, Inc. (“BCB”) and the former directors and officers of Pamrapo Bancorp,...more

Cozen O'Connor

Texas Supreme Court Broadly Defines Successor When Enforcing the Insured v. Insured Exclusion

Cozen O'Connor on

The Underlying Dispute - Robert Primo (Primo) served as the director and treasurer for a condominium association. Shortly before he resigned from that position, he wrote himself two checks totaling more than $100,000...more

McCarter & English, LLP

Policyholders Beware: Failure to Give Timely Notice, as Soon as Practicable During a Claims-Made Policy's Effective Dates or...

The New Jersey Supreme Court recently held that an insurer may disclaim coverage without showing it was prejudiced by a policyholder’s failure to comply with a claims-made policy’s notice provision. In Templo Fuente De...more

Cozen O'Connor

Fifth Circuit Refuses To Predict Texas Will Adopt a Sophisticated Insured Exception to Contra Proferentem

Cozen O'Connor on

Texas has yet to address whether it recognizes a sophisticated insured exception to the doctrine of contra proferentem, and the state’s federal Court of Appeals declined an opportunity to make a prediction about that question...more

Manatt, Phelps & Phillips, LLP

Insurance Recovery Law - July 2015 #2

California Court: Rejected Demand Within Policy Limits Not Necessary for Bad Faith Claim - Why it matters: Insurers must proceed with caution when they become aware that a settlement within policy limits is possible,...more

Carlton Fields

Eleventh Circuit Affirms Summary Judgment for Insurer Based on "Other Capacity" Exclusion

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On June 22, the Eleventh Circuit affirmed the grant of summary judgment in favor of National Union Insurance Company of Pittsburgh, Pa., in an action where the insured sought $10 million in coverage under a D&O policy. The...more

Morris James LLP

RSUI Indem. Co. v. Sempris LLC, C.A. No. N13C-10-096 MMJ CCLD (Del. Super. Ct. Sept. 3, 2014)

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In this case, brought in the Delaware Superior Court’s Complex Commercial Litigation Division, the Court considered whether RSUI Indemnity Co. (“RSUI”) owed insurance coverage obligations to Sempris, LLC (“Sempris”). RSUI...more

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