Category: Directors and Officers

Stonewall Corp. v. Conestoga Title Ins. Co. et al

(Southern District of New York, January 7, 2010) 

Stonewall Corporation commenced a third-party action against its former attorney alleging he committed legal malpractice while providing it representation with respect to property rights in New Jersey.  Stonewall claims that its attorney (1) failed to pursue certain legal actions, as well as failed to provide proper advice regarding related proceedings; (2) failed to convey a settlement offer; and, (3) failed to produce documents.  The court dismissed …

This is an interesting article regarding the recent Attorney General lawsuit regarding alleged process service malfeasance by law firms.  For a free copy click here

Any questions regarding this subject, contact Albert D'Aquino at [email protected]
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Cox Communications, Inc. v. National Union Fire Ins. Co. of Pittsburgh, PA

(N.D. Georgia, November 12, 2009)

Insurer moves for summary judgment of declaratory judgment action seeking damages under a claims made Directors, Officers and Corporate Liability policy.  Plaintiff's damages include reimbursement of certain costs associated with an $80 million settlement of an underlying action, with approximately an additional $8 million in legal fees and expenses.  The insurer's motion seeks relief on three grounds: the claim was not "first made" during the policy and that the prior …

SEC v. Stanford Int'l Bank

(U.S. Dist. Ct., N. Dist. of Texas, September 28, 2009)

Robert Allen, the alleged architect of the Stanford Ponzi scheme, sought to secure up to $90 Million in insurance funds to pay defense costs. Stanford had made an emergency application to an English court seeking the policy proceeds.

The court, claiming jurisdiction over the policies at issue entered an order enjoining “Allen Stanford and anyone acting in concert with him, including his attorneys, from taking further steps to …

Starr International, Inc. v. AIG, Inc.

(Southern District of New York, August 31, 2009)

In a counterclaim to a suit filed by Starr International Company, Inc. (“SICO”) against AIG seeking the return of artwork and other property, AIG claimed that SICO held certain AIG stock in trust for AIG’s benefit. Unfortunately for AIG, there were no trust documents, and it was left to claim that billion dollar oral trust had been created in its favor in 1970.  In a lengthy and dramatic court …

Sprint Nextel Corp. v.  Executive Risk Indemn et. al.

(District Court of Kansas, September, 1, 2009)

Sprint Nextel Corporation has filed suit against a number of insurers providing Directors and Officers coverage seeking a declaration of rights under the respective policies for losses arising out of a 2003 securities litigation. Sprint Nextel has expended in excess of $2Million in costs resulting from the derivative action. 

The coverage dispute concerns, in part, which insurer is on the risk for the 2000 and 2001 …

In Re Broadcom Corp.

(Central District, California)

A proposed partial settlement with numerous insurers is set to allow Broadcom Corp. to recovery $118 million for a derivative suit involving a $2.2 billion stop options backdating scheme.  Most of the funds come from the insurers providing Broadcom Corp. with directors and officers coverage.

The proposed settlement was filed Friday in the U.S. District Court for the Central District of California.  The settlement would resolve the consolidated federal derivative suit for most of …

AT&T Corp. v. Certain Underwriters at Lloyd’s London (NJ App. August 3, 2009)

AT&T sought coverage under both primary and excess fiduciary liability policies for several suits against it relating to a stock-option plan.  The suits alleged that AT&T breached its contractual obligations relating to stock options provided in its acquisition of a company.  In addition to liabilities arising out of breach of a fiduciary duty, the policies provided coverage for negligent acts in the administration of certain employee-benefit plans.  The …

Greenwich Ins. Co. v. Media Breakaway, LLC 

(C.D. Cal. July 22, 2009)

Defendants online marketing company and corporate officer were sued by MySpace Inc. for sending spam mail through MySpace users’ accounts without their knowledge through ‘phishing’.  Defendants held a directors’ and liability insurance policy and an errors omissions insurance policy.  Each policy excluded coverage for intentionally dishonest conduct, and claims made as a result of profit gained by the policyholder to which it was not entitled.  The court held that …

Four Seasons Health Care, Inc. et al v. Willis Insurance Services of Georgia, Inc.

(Georgia Court of Appeals, July 15, 2009)

Policyholders initiated this action alleging that broker failed to procure adequate directors and officers (D&O) liability insurance to cover claims arising out of a shareholder’s suit.  The underlying suit involved claims by a shareholder’s group (owning more than 5%of the voting stock) that they were wrongfully frozen out of the opportunity to purchase foreclosure stock by the policyholder’s, one of whom was the …