D&;O – No Coverage Based Upon Consent and No Action Clauses in Policy After Insured Settles for Amount Greater Than Insurer’s Consent at Mediation

By | The D&O E&O Monitor | April 7, 2014
D&;O – No Coverage Based Upon Consent and No Action Clauses in Policy After Insured Settles for Amount Greater Than Insurer’s Consent at Mediation

These two clauses do not often come into issue in coverage litigation, but a Georgia federal court had little trouble in enforcing them to preclude coverage for a $4.9M settlement and a claim for coverage under an excess D&O policy. Piedmont Office Realty Trust, Inc. v. XL Specialty Ins. Co., 2014 U.S. Dist. LEXIS 42575 (N.D. Ga.  March 28, 2014).