3rd Circ. Sides With Insurers In Delta Finance Spat

Law360, New York (May 6, 2010, 1:01 PM EDT) -- A federal appeals court has upheld a lower court's ruling that Westchester Surplus Lines Insurance Co. and United States Fire Insurance Co. are not obliged to cover Delta Finance Corp. in a suit brought by noteholders who claim they were cheated out of $110 million in the bankrupt company's restructuring.

A policy exclusion in DFC's directors and officers insurance bars the company from coverage in a suit alleging it told a $110 million lie to noteholders as it restructured, the U.S. Court of Appeals for the...
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