United States First Circuit

The district court's order requiring defendant-insurer to advance defense costs to former directors and officers of Westernbank of Puerto Rico, who were facing an investigation by the Federal Deposit Insurance Corporation (FDIC) for allegedly causing losses to the bank, is affirmed, where: 1) under Puerto Rico law, only a "likelihood" of a "remote possibility" of coverage is required to trigger an insurer's cost advancement duty; and 2) the allegations make it likely possible, even if only remotely so, that the FDIC is suing on these non-insureds' behalf rather than the bank, so as to preclude the insured versus insured exception contained in the policy.

Appellate Information

• Decided 03/31/2014
• Published 03/31/2014

Judges

• THOMPSON

Court

• United States First Circuit

Counsel