Great American Insurance Co. v. Primo

by
Before resigning his director and treasurer positions with Briar Green, Robert Primo wrote himself two checks from Briar Green’s account totaling approximately $100,000. Briar Green made a claim for the alleged loss with its fidelity insurer, Travelers Casualty & Surety Company, which paid the claim in exchange for an assignment of Briar Green’s rights and claims against Primo. Travelers then sued Primo to recover the funds. Primo asserted a third-party claim against Briar Green and demanded that Great American Insurance Co., which carried Briar Green’s directors-and-officers (D&O) liability policy, defend him in the Travelers suit. Travelers subsequently non-suited its claims against Primo, and Primo non-suited his third-party claims. Primo then filed a contractual-indemnity action against Briar Green to recover the fees and expenses he had incurred in the Travelers suit. The suit resulted in a judgment for Primo. Meanwhile, Primo sued Great American in another action seeking reimbursement for the fees and expenses incurred in the Travelers suit. The trial court granted summary judgment for Great American. The court of appeals reversed. The Supreme Court reversed, holding that the policy provided no coverage for Primo’s claims because an insured-versus-insured exclusion in the D&O liability insurance policy applied. View "Great American Insurance Co. v. Primo" on Justia Law

Posted in: Insurance Law

Comments are closed.