Representing a former director of Adelphia Communications, Anderson Kill obtained defense costs coverage for actions filed against Mr. Venetis and the Rigas family alleging fraud.

The insurance companies had refused to advance defense costs arguing that there were allegations of fraud against all the defendants and therefore the insurance companies could avoid their obligation to pay defense costs by simply asserting a claim for rescission of the policies. The Eastern District of Pennsylvania agreed with Anderson Kill's argument that it was for the Court to make a decision regarding rescission. Until it had done so, the insurance companies must advance defense costs and could not avoid their own policy obligations by arguing that they did not have to comply with them. "Insurance carriers do not function as courts of law," U.S. District Judge Michael M. Baylson wrote. "If a carrier wants the unilateral right to refuse a payment called for in the policy, the policy should clearly state that right. This policy does not do so.The Wall Street Journal quoted Anderson Kill's R. Mark Keenan: "This is still the United States of America -- when there's a dispute you have to go to court and get a determination, … Until that's done, the policy's supposed to pay out according to its terms."The Anderson Kill attorneys involved in the case were: R. Mark Keenan and Cort Malone.Decision [pdf]Press Release [pdf]Wall Street Journal Article, March 24, 2004 [pdf]