United States Fifth Circuit

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Pendergest-Holt v. Certain Underwriters at Lloyd's, 10-20069

In an action by various insureds, including R. Allen Stanford, each faced with civil and criminal allegations that they engaged in a massive Ponzi scheme, seeking reimbursement of defense costs under a directors' and officers' liability policy from the policy's underwriters, an injunction prohibiting defendant-insurers from withholding defense funds is affirmed with modifications and remanded, and the underwriters are enjoined from refusing to advance defense costs as provided for in the D&O Policy unless and until a court "determine[s] in fact" by clear and convincing evidence "that the alleged act or alleged acts [of Money Laundering] did in fact occur."

Appellate Information

  • Decided 03/16/2010
  • Published 03/16/2010

Judges

Court

  • United States Fifth Circuit

Counsel