Nationwide Unit Beats Bad-Faith Claim In D&O Coverage Fight

Law360 (July 21, 2021, 9:26 PM EDT) -- A Nationwide unit didn't act in bad faith when it denied coverage to a manager of a Colorado restaurant venture in a bankruptcy dispute, a New York federal court has found, saying the insurer had adequate reasons to believe the manager was not insured under its policy. 

U.S. District Judge Lewis J. Liman said Monday it was incumbent upon Patrick McGrath, the manager of restaurant venture Rocky Aspen, to inquire whether the Scottsdale Insurance Co. policy covering corporate entities connected to the venture also covered him as a director and officer. That he didn't by the time the insurer denied him coverage didn't make for...

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