United States First Circuit

In a corporation's suit against its insurer seeking to recover its costs in settling a shareholder class action under a corporate and director and officer liability insurance policy, district court's judgment that the corporation's loss was not insurable as a matter of Massachusetts public policy is reversed in part and remanded where: 1) there is no public policy that prevents the corporation from recovering under the policy; but 2) the Bump-up clause bars recovery of settlement amounts paid to resolve claims against the corporation itself; and 3) on remand, the district court must determine whether any amounts paid in settlement were attributable to the indemnification of the named directors and officers and, if so, determine how much of the settlement costs should be allocated to those claims.

Appellate Information

• Decided 10/13/2010
• Published 10/13/2010

Judges

• DYK

Court

• United States First Circuit

Counsel

• For Appellant:
  
• Robert G. Jones, Daniel J. Standish