Judge: Public Policy Does Not Excuse Insurers From Indemnifying Insureds’ Fraud

Mealey's (March 6, 2018, 8:22 AM EST) -- WILMINGTON, Del. — A Delaware judge on March 1 granted in part and denied in part directors and officers liability insurers’ motion for summary judgment in their lawsuit seeking a declaration that principals in a company are not entitled to coverage for the costs they incurred in negotiating settlements in two lawsuits brought by stock shareholders, saying that although it may strain public policy to permit a director to collect insurance on a purported fraud, it does not appear to be explicitly prohibited by state law (Arch Insurance Company, et al. v. David H. Murdock, et al., No. N16C-01-104-EMD, Del. Super., New Castle Co., 2018 Del. Super. LEXIS 96)....