D&O Liability

Subscribe to D&O Liability via RSS

Just because a series of merger documents assert something to be true does not necessarily make it so, particularly when it comes to insurance coverage.  That was the lesson an excess-layer D&O carrier learned when it attempted to assert insured-versus-insured and fraud exclusions to defeat a claim to policy proceeds by the purchaser of a corporation in Wojtunik v. Kealy, No. 03-cv-02161 (D.Ariz. Mar. 31, 2011).  A copy of the court’s decision is available here. …
Read More Arizona Federal Court Permits Garnishment From Defunct Company’s D&O Insurers

The Seattle Times recently reported that a settlement “in excess of $200 million” has been reached in a case involving the 2008 demise of the banking giant Washington Mutual.  The suit, filed against a number of WaMu’s former directors and officers and a bevy of Wall Street investment banks, concerns WaMu’s allegedly slapdash lending practices and misleading public statements about the bank’s financial health. …
Read More Tentative Settlement Worth a Reported $200+ Million Reached in WaMu Securities Class Action

In the recent case of Phillips Roberts (Liquidator of Onslow Ditching Ltd) v (1) Peter Frohlich (2) Godfrey Spanner [2011] EWHC 257 (Ch), the High Court was asked to decide whether the respondent directors had breached their fiduciary duties by continuing with a land development project when it was not in the best interests of the company or its creditors. …
Read More UK: Directors Take Note – Always Act in Company’s and Creditors’ Best Interests

In an unpublished opinion released earlier this year, the U.S. Court of Appeals for the Third Circuit emphasized the primacy of the actual words used in a D&O insurance policy.  The decision is notable because it reflects a continued emphasis by courts on the language used in the policy that the insured actually bought, and because the court unflinchingly employs a plain-language analysis to reach its conclusions as to coverage. …
Read More Third Circuit D&O Decision Underlines Primacy of Exclusionary Language

In two separate cases, federal courts have upheld the carrier’s denial of coverage for claims by an employer alleging that the insured induced a breach of their former employee’s employment contract. …
Read More Courts Find That Employment Claims Are Excluded By Contractual Liability Exclusions