Firm News

LORDA wins an imporant D&O Coverage Decision

When Zurich American Insurance Company was sued in Dallas Federal Court for an alleged wrongful denial of a Directors and Officers claim and for violations of the Texas Insurance Code, it turned to Bob Allen for its defense. Bob filed a Motion to Dismiss under Fed. R. Civ. P. 12(6) for failure to state a claim on which relief can be granted.

In a well reasoned opinion, Dallas Federal Judge Sidney Fitzwater granted Zurich’s Motion to Dismiss and held: “as Zurich points out in its Motion to Dismiss, ‘ACBG is attempting to transform its D&O liability policy into a first-party policy to provide coverage for its own loss.'”