Gregory Hudson, of the Global Insurance Department, writes an article titled "Guilty D&O May Lose Defense Costs, Indemnification Too," in Law360 about losing defense costs and seeking recoupment. In Protection Strategies Inc. v. Starr Indemnity & Liability Co., the U.S. District Court for the Eastern District of Virginia allowed an insurer to recoup over $670,000 in costs paid for its insured first to respond to government subpoenas and then for the insured and its key employees to defend themselves against claims for governmental fraud and conspiracy.
To read the article, click here.