The Honorable Karen Weldin Stewart

Summary

The Supreme Court of Delaware affirmed dismissal of the receiver’s breach-of-contract and professional-negligence claims against the insurer’s captive manager and accounting firms. It held that the receiver could not avoid the in pari delicto doctrine merely because the underlying entity was an insurer or because the defendants were professional advisors. The Court adopted the Court of Chancery’s balance between advisor accountability and protection against excessive liability.