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Post-Confirmation Settlement Agreements: The Implications on Insurance Proceeds
It is a common enough scenario ' a company purchases a directors and officers liability policy (a 'D&O Policy') ' to protect against any claims that may be brought against its directors and officers. The D&O Policy also may contain what is termed 'entity coverage' meaning that the policy may cover claims made both against the directors and officers, as well as the company itself. While the D&O Policy may be relatively straightforward in providing for the rights and obligations of the respective parties, if the company files for bankruptcy a whole host of issues arise. In this scenario, the laws governing bankruptcy and insurance may collide and, in some instances, are not easily reconcilable.
During the course of a bankruptcy, the directors and officers may become the target of multiple lawsuits by various constituents, including creditors and shareholders seeking to tap into the D&O Policy proceeds. Indeed, in some cases, the D&O Policy may be the most substantial asset through which the creditors will achieve any recovery. If litigation is brought against the debtor's directors and officers, whether in bankruptcy court or otherwise, oftentimes the parties seek to settle their claims. Among the many issues faced by the insurers and insureds (including the company, as well as the directors and officers) are the structure of any such settlement, the resolution of competing interests under the D&O Policy, and the rights of the respective parties to the proceeds of the D&O Policy. Questions arise as to whether the terms of any settlement, which if funded from the proceeds of such D&O Policies, may ultimately be approved by the bankruptcy court. Given that most bankruptcy courts find that where the company is the named insured, a D&O Policy is property of a debtor's bankruptcy estate (under certain circumstances, the 'proceeds' of the policy may also be a part of the debtor's estate), any settlement of litigation seeking payment from the D&O Policy must be approved by the bankruptcy court in accordance with Rule 9019(a) of the Federal Rules of Bankruptcy Procedure.
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
Beach Boys Songs Written Decades Ago Triggered Current Quarrel With Lawyers
There's current litigation in the ongoing Beach Boys litigation saga. A lawsuit filed in 2019 against Nevada residents Mike Love and his wife Jacquelyne in the U.S. District Court for the District of Nevada that alleges inaccurate payment by the Loves under the retainer agreement and seeks $84.5 million in damages.
Removing Restrictive Covenants In New York
In Rockwell v. Despart, the New York Supreme Court, Third Department, recently revisited a recurring question: When may a landowner seek judicial removal of a covenant restricting use of her land?
When Is a Repair Structural or Nonstructural Under a Commercial Lease?
A common question that commercial landlords and tenants face is which of them is responsible for a repair to the subject premises. These disputes often center on whether the repair is "structural" or "nonstructural."