Rsui Indemnity Co. v. Murdock

Summary

The Supreme Court of Delaware affirmed judgment requiring the excess insurer to pay its policy limits for settlements arising from fiduciary-duty and securities litigation. It held that Delaware law governed the D&O policy, Delaware public policy did not prohibit coverage for losses arising from fraudulent breaches of loyalty, the fraud exclusion did not apply to the federal securities settlement, and the policy's allocation provision did not reduce coverage. The court also upheld summary judgment rejecting the insureds' bad-faith claim and declined to reach collateral estoppel because the other rulings were affirmed.