Law360, New York (February 06, 2012, 1:42 PM ET) -- The first bankruptcy of the corporate entity that makes both Wonder Bread and Twinkies has an unexpected directors and officers (D&O) coverage decision filling. In United States Bank Nat'l Ass'n v. Federal Ins. Co., No. 10-3472 (8th Cir. Dec. 13, 2011), a creditor’s trust sought to recover a $56 million stipulated judgment from a D&O policy covering the bakery giant and its directors.
The U.S. Court of Appeals for the Eighth Circuit rejected the claim because the trust had entered into an “agreement not to execute”...
No Wonder: Denying A D&O Claim As Excluded Loss
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