Securities Law | Expert Legal Commentary
January 15, 2010
Medical Mutual v. Indian Harbor: No D&O Coverage If Lawsuit Does Not Specifically Name Officer or Director
Medical Mut. Ins. Co. of Maine v. Indian Harbor Ins. Co.
By
Josh Lawler and Joel B. Ginsberg of Zuber & Taillieu LLP
The First U.S. Circuit Court of Appeals held that a company cannot recover from its D&O insurance carrier the cost of fighting lawsuits or administrative cases that allege wrongful director or officer acts but do not specifically name those individuals as defendants. In Medical Mut. Ins. Co. of Maine v. Indian Harbor Ins. Co., 583 F.3d 57 (1st Cir. 2009), the Court held that only claims specifically filed against “insured persons” under the policy are covered by the policy – under the policy at issue, only the individual directors and officers, but not the general overall company, were “insured persons.” As a result, claims brought against only the company and not the individual directors and officers could not be covered.
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About the Authors
Josh Lawler is a Partner of Zuber & Taillieu LLP, focusing on corporate law and securities and finance law.
Joel B. Ginsberg is an Associate of Zuber & Taillieu LLP, focusing on corporate law, and securities and finance law.
Image Credit: ©iStockphoto.com/sgame
View a PDF of the judicial opinion