The Eighth Circuit Upholds Summary Judgment for Yocum’s Excess Insurer Client
On December 13, 2011, the Eighth Circuit affirmed summary judgment in favor of Yocum’s client. Ms. Yocum’s client was one of several excess carriers with policies following a primary policy issued by Federal Insurance Company for a combined total of $85 Million D&O coverage. Plaintiff Trust was an assignee of an agreed $56 Million judgment against a former officer of Interstate Bakeries. The former officer was absolved from payment by reason of a settlement agreement with Plaintiff. The Court concluded the District Court properly granted summary judgment finding no coverage for the claimed loss. The Court determined that Missouri law does not allow estoppel to extend coverage over otherwise uncovered claims. The Court further concluded that the $56 Million judgment and settlement agreement did not constitute a Loss triggering coverage under the policies.
