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Plumbing Fixture Co. Can't Get Coverage Of Ex-Execs' Suit

Law360, Los Angeles (September 26, 2016, 5:34 PM EDT) -- A company specializing in antique-style plumbing fixtures is not entitled to coverage under a Scottsdale Insurance Co. directors and officers policy for former directors' claims that the business had gone into decline because of the chief executive's erratic behavior, a California federal judge ruled Monday.

U.S. District Judge Haywood S. Gilliam Jr. found that Scottsdale had no duty to defend Oakland, California-based Sunrise Specialty Co. Inc. and its CEO in an underlying lawsuit brought by three former Sunrise directors, by virtue of an exclusion in the D&O policy for claims leveled by one insured against another.

Because the ex-directors qualify as...

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California Northern

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Insurance

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Date Filed

March 24, 2016

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