LexisNexis® Legal Newsroom
On the Importance of Reading the Fine Print in Excess D&O Policies

Peter M. Gillon, Partner, Pillsbury Winthrop Shaw Pittman LLP A recent ruling by the United States Court of Appeals for the Second Circuit, affirming the decision of District Court Judge Gerard Lynch in XL Specialty Ins. Co. v. Agoglia , 2009 U.S. Dist. LEXIS 36601 (S.D.N.Y. Apr. 30, 2009), provides...

McCarter and English LLP on Insurance Coverage for Damages Arising from the Gulf Oil Spill

By Brian J. Osias and David C. Kane, Attorneys, McCarter & English, LLP The recent oil spill in the Gulf of Mexico has become arguably the worst in United States history. Spewing up to 30,000 barrels a day, it has surpassed even the Exxon Valdez disaster. Third parties will invariably suffer...

Kara Altenbaumer-Price and Amy Elizabeth Stewart on “Ponzi Schemes, and Money Laundering, and Defense Costs! Oh My!”

By Kara Altenbaumer-Price and Amy Elizabeth Stewart In “Ponzi Schemes, and Money Laundering, and Defense Costs! Oh My!,” by Kara Altenbaumer-Price and Amy Elizabeth Stewart, appearing in the September/October 2010 issue of Coverage, the authors examine Directors and Officers coverage...

Advisory—UK Bribery Act 2010 – Consider Your Directors and Officers Insurance?

By Raymond L. Sweigart and Rene L. Siemens, Partners, Pillsbury Winthrop Shaw Pittman LLP Section 7 of the UK Bribery Act that came into force on 1 July establishes a strict liability corporate offense for failure to prevent bribery. The only defence recognized in the Act is where an affected commercial...

Directors and Officers Insurer Sued By FDIC Over Bank Failure

By Kevin M. LaCroix, Esq., Executive Vice President, OakBridge Insurance Services In the FDIC's latest lawsuit filed in its role as receiver of a failed bank, the FDIC not only named as defendants nineteen former directors and officers of the failed bank, but also included as defendants seventeen...

LexisNexis® Insurance Law Community Podcast: Tim Burns on D&O Insurance Disputes and Arbitration

On this edition, Timothy Burns of Perkins Coie LLP discusses D&O policies and arbitration, consolidation issues and multiple insurers, the rise in disputes over defense costs and special issues involving excess insurers and consent. Mr. Burns is the author of the Directors and Officers Insurance...

A Primer for Managing Risks

(Lexis.com subscribers may access the cases below by clicking on the links) By Verne A. Pedro, Special Counsel, Goldberg Segalla LLP Injured visitors, faulty construction, mold, critters, fire, natural disasters-businesses face substantial risks from a host of potentially devastating unforeseen...

D&O Insurance: Layers and Tiers and Problems

By Kevin M. LaCroix, Esq., Executive Vice President, OakBridge Insurance Services One of the critical issues in putting together a D&O insurance program is the question of how to structure the insurance. Among the more complex issues is how to divide the program between "traditional"...

Perkins Coie LLP on Avoiding Gaps in Insurance Coverage for Private-Equity-Placed Directors at Portfolio Companies

By Michael T. Sharkey, Partner, Perkins Coie LLP Directors & Officers ("D&O") liability insurance policies purchased by private equity and venture capital firms frequently include "Outside Directorship" coverage, designed to protect the individuals that those firms place...

D&O Insurance: Bank Directors' Notice of FDIC Failed Bank Suit Held Timely

By Kevin M. LaCroix, Esq., Executive Vice President, OakBridge Insurance Services On February 5, 2013, in a detailed opinion exploring the nuances of a D&O policy's extended reporting period provisions, Western District of North Carolina Judge Henry Herlong Jr. determined that the directors...

Directors and Officers Insurance: Separate Claims Deemed a Single Claim--What Are the Implications?

By Kevin M. LaCroix, Esq., Executive Vice President, OakBridge Insurance Services As I have previously noted (refer for example here ), one of the most vexing issues in the D&O claims arena is the questions of whether or not two claims are or are not interrelated. If the two are interrelated,...

Traub Lieberman Insurance Law Blog: Mississippi Court Holds D&O Policy Not Triggered By Real Estate Scheme

Brian Margolies, Partner, Traub Lieberman Straus & Shrewsberry LLP In its recent decision in State Farm Fire& Cas. Co. v. Anderson , 2013 U.S. Dist. LEXIS 57837 (S.D. Miss. Apr. 23, 2013) [ enhanced version available to lexis.com subscribers ], the United States District Court for the Southern...

Perkins Coie LLP on Britt v. Twin City: Private Equity Firms Should Review the Scope of the Insurance Purchased to Cover Claims Against Them and the Individuals They Place as Directors

The recent decision in Britt v. Twin City Fire Insurance Co. , C.A. No. 8SACV 12-1355-JST (JPRx), slip op. (C.D. Cal. June 26, 2013), highlights important insurance considerations for private equity funds and the individuals they place as directors or officers at portfolio companies. This commentary...

Texas Court Holds Suit Under D&O Policy Not Ripe for Declaratory Judgment

In its recent decision in American Construction Benefits Group, LLC v. Zurich Am. Ins. Co., 2014 U.S. Dist. LEXIS 5147 (N.D. Tex. Jan. 15, 2014) [ enhanced version available to lexis.com subscribers ], the United States District Court for the Northern District of Texas had occasion to consider whether...

Directors' and Officers' Insurance and Its Role in Government Investigations

By Richard W. Westling and Mark M. Bell In Directors’ and Officers’ Insurance and Its Role in Government Investigations, authors Richard W. Westling and Mark M. Bell point out that the number, scope, and breadth of government investigations have increased dramatically. The cost of responding...

Does a D&O Policy That Expressly Covers Antitrust Claims Exclude Antitrust Damages?

By Seth Lamden According to the court in William Beaumont Hospital v. Federal Insurance Co ., No. 13–1468 (6th Cir. Jan. 16, 2014) [ enhanced version available to lexis.com subscribers ], the answer is "no." The court in that case held that a hospital's settlement of a private...

D&O Coverage: The Devil Is In the Details

A five-paragraph opinion by the New York Appellate Division suggests the potentially devastating consequences of ignoring the fine print of Directors & Officers Liability insurance policies. In Associated Community Bancorp., Inc., et al. v. St. Paul Mercury Ins. Co. , 2014 NY Slip Op 04697 (App....

Relatedness of Claims is Not Properly Addressed on a Motion to Dismiss Where it Involves a Factual Inquiry

Originally published in California Insurance Law Review - 2015 11.03.15 In Rancho Tehama , the district court held that, under the facts of the case before it, relatedness of claims could not be properly addressed on a motion to dismiss because it entailed a premature factual inquiry. The insured...