Federal Judge: No Directors, Officers Liability Coverage Owed For $40M Judgment

Mealey's (June 20, 2016, 3:44 PM EDT) -- FORT MYERS, Fla. — A Florida federal judge granted summary judgment in favor of a directors and officers liability insurer on June 7 after finding that it has no duty to cover an underlying $40 million consent judgment arising from claims of real estate fraud because every underlying claim asserted against the insured shares the same factual basis as a 2008 counterclaim that was “first made” before the policy’s inception (RSUI Indemnity Co. v. Attorney’s Title Insurance Fund Inc., No. 13-670, M.D. Fla.).

(Amended judgment available....
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