Lowenstein Sandler secured summary judgment in an insurance coverage lawsuit filed on behalf of Mist Pharmaceuticals, LLC (Mist).
Mist is a defendant in a lawsuit pending in Delaware alleging that Mist and its directors and officers diverted corporate opportunities from a joint investment. Initially, Berkley defended Mist in that suit, but Berkley suddenly withdrew from its defense one business day before a scheduled mediation. Berkley contended that its D&O policy did not provide coverage because the “claim” against Mist and its directors and officers was made years before Berkley’s D&O policy went into effect.
Lowenstein filed a summary judgment motion arguing that Berkley’s policy did, in fact, apply and that it owed Mist a defense obligation.
As a result of this victory, the Mist Insureds are now entitled to file a motion with the court to recover the coverage counsel fees incurred to achieve this victory.
The Lowenstein team included Lynda A. Bennett (Picture) and Eric Jesse.
Law Firms: Lowenstein Sandler LLP;
Clients: Mist Pharmaceuticals, LLC;