Insurer Told To Pay Ex-Refco Exec's Legal Team

Law360, New York (August 29, 2008, 12:00 AM EDT) -- A federal judge has ordered an insurer to resume paying the defense costs of former Refco Inc. President Tone N. Grant as mandated by the bankruptcy court, after the insurance company suspended coverage in the wake of his criminal conviction for securities fraud.

Judge Gerard E. Lynch of the U.S. District Court for the Southern District of New York on Thursday upheld a Manhattan bankruptcy court order directing Allied World Assurance Co. Inc. to continue payments to Grant.

“The court concludes that AWAC's decision to unilaterally...
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