On December 12, 2018, the Superior Court of Delaware granted summary judgment confirming the right of McKool Smith client AR Capital to coverage for the costs it incurred defending against civil litigations and an investigation by the SEC in connection with management services it provided to VEREIT, Inc. In response to AR Capital’s claims that VEREIT had unfairly diverted insurer payments to its own use, the Court further ordered that AR Capital’s defense expenses be paid to the exclusion of those submitted for coverage by VEREIT until the amount recovered by both insurers is equal, and that after that the bills of both be paid on a first-in-time basis.
Media coverage of the ruling can be found here:
- NYC Investment Firm Entitled to Insurance Payment on $14.5M in Legal Costs, Del. Court Says (Delaware Business Court Insider)
Investment Firm Wins Litigation With Insurers, Co-Insured Over D&O Policy (Business Insurance)