John O. Desmond, Chapter 7 Trustee of Ameritrans Capital Corp. v. XL Specialty Insurance Co. Adversary case 19-01012. Complaint by John O. Desmond against XL Specialty Insurance Company. Nature of Suit Recovery of money/property - other (2/06/19)
XL had insured the former D&O’s under a certain Management Liability and Company Reimbursement Insurance Policy, with coverage limits of $5 million, Pursuant to Endorsement No. 17 of the Policy, however, as additional coverage XL shall pay on behalf of the Debtor “Investigation Costs” incurred in investigating and evaluating shareholder derivative demands for wrongful acts allegedly committed by any insured person up to the amount of $250,000.00 (the “Investigation Costs”).
The Trustee contends that the amounts are now due and owing by XL to the Trustee under the Policy and that any future Investigation Costs allowed in the Bankruptcy Case will be due, owing, and payable by XL up to the Policy limit.The Trustee is seeking reimbursement of Investigation Costs both heretofore awarded, found by the Court to have been suffered as a result of the Defendant’s breach of its contractual obligations up to the sum of $242,066.44, plus applicable interest running from the date of the Trustee’s initial Motion for Allowance of Fees in December 2017 to the present.
Source: PACER [Docket 218]
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