Wiley Rein Secures Favorable Ruling in D&O Coverage Case
Wiley Rein secured a favorable ruling on behalf of an insurer in a directors and officers (D&O) coverage case. A team led by Insurance Practice partners Charles C. Lemley and David H. Topol persuaded a federal judge to deny former directors and officers of Puerto Rico’s R-G Premier Bank access to coverage under an excess policy because the limits of another policy have yet to be exhausted.
The August 17 opinion and order, covered by Law360, follows a motion filed in June by the directors and officers that sought advancement of defense costs under an “A-Side” policy. The Federal Deposit Insurance Corp. (FDIC) is seeking $257 million in damages allegedly caused by the negligence of former directors and officers. In his opinion, U.S. District Judge Pedro A. Delgado-Hernandez denied access to the funds until the limits of a “management liability” policy are exhausted.
Mr. Lemley and Mr. Topol were assisted in the case, FDIC v. Galan-Alvarez, by Wiley Rein associate Frederick H. Schutt.
Senior Communications Manager