Texas High Court Finds for Insurer in D&O Coverage Dispute

The Texas Supreme Court recently ruled in favor of an insurer in a case that hinged on the applicability of an insured-v.-insured exclusion in the carrier’s directors and officers (D&O) liability policy.  The Court’s action reversed the ruling in Great American Insurance Company v. Robert Primo by the Court of Appeals for the 14th District of Texas in Harris County (14-13-00492-CV, 455 SW3d 714, 12-18-14).  The case grew out of various actions and counter actions by Robert Primo and Briar Green, a non-profit condominium association.  Primo at one time served as a director and treasurer of Briar Green. Before he resigned from those positions in 2008, Primo wrote himself two checks totaling a little more than $100,000. He said the money was for services rendered to the association and that the Briar Green board had approved the payment. However, the association asserted that the funds were misappropriated and filed a claim with Travelers Casualty & Surety for the loss    Read the article……………