Bally Loses Bid For Excess Coverage Of Legal Fees

Law360, New York (June 25, 2010, 4:10 PM EDT) -- A federal judge has granted summary judgment to Ace American Insurance Co. and Fireman's Fund Insurance Co., dismissing them from a case over who should pay the $33 million in legal fees racked up by Bally Total Fitness Holding Corp. during suits alleging accounting fraud at the company.

Judge Wayne Andersen of the U.S. District Court for the Northern District of Illinois ruled Tuesday that Bally's below-policy-limits settlements with other excess insurance carriers did not satisfy the conditions precedent to coverage defined within the Ace and...
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