Howard B. Epstein and Theodore A. Keyes Delaware Supreme Court Rules That Appraisal Actions Are Not Covered by Public Company D&O Insurance
In their Corporate Insurance column, Howard B. Epstein and Theodore A. Keyes discuss a unanimous decision from October, in which the Delaware Supreme Court reversed a trial court ruling and held that an appraisal action is not a "Securities Claim" as defined in the applicable D&O liability insurance policy. Consequently, the court ruled that the insured was not entitled to coverage for defense costs and pre-judgment interest incurred in connection with an appraisal proceeding.
November 16, 2020 at 12:00 PM
8 minute read
In a unanimous decision issued in late October, the Delaware Supreme Court reversed a trial court ruling and held that an appraisal action is not a "Securities Claim" as defined in the applicable directors' and officers' (D&O) liability insurance policy. Consequently, the court ruled that the insured was not entitled to coverage for defense costs and pre-judgment interest incurred in connection with an appraisal proceeding. In re Solera Insurance Coverage Appeals, 2020 WL 6280593 (Del. Oct. 23, 2020).
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