Delaware Superior Court Rejects Insurance Company's Bid for Proportionate Allocation of Defense Costs Among Multiple Insurers
8/5/2008
Wilmington, Delaware (Aug. 4, 2008) - The Delaware Superior Court has ruled that a D&O insurance company must pay defense costs on behalf of its policyholder to the full policy limits against a claim alleging many wrongful acts. HLTH Corporation and Emdeon Practice Services, Inc. v. Federal Insurance Company et. al., July 31, 2008.
The decision also affirmed a key principle for policyholders: that excess insurance policies can be triggered when the policyholder has spent to the limits of its primary policy, regardless of whether it collected the full amount from its primary insurer. Recent decisions in Qualcomm and Comerica had unsettled policyholders by giving rise to insurance company arguments to the contrary: that if a policyholder settles with its primary insurance company, excess policies are not triggered. The decision made clear that a tower of $100 million in D&O insurance coverage for HLTH must respond.
About Anderson Kill & Olick, P.C.
Anderson Kill & Olick, P.C practices law in the areas of Insurance Recovery, Commercial Litigation, Corporate & Securities, Employment & Labor Law, Real Estate, Tax, Trusts & Estates, and Bankruptcy. The firm's senior attorneys maintain national and international practices from offices in New York City, Newark, NJ, Philadelphia, PA and Washington, D.C.
Please click here for a copy of the decision.
For more information, please contact:
William G. Passannante
(212) 278-1328
wpassannante@andersonkill.com
|
