Delaware Supreme Court Rules On Appraisal Action Issue

In late October, the Delaware Supreme Court reversed a trial court ruling and held that an appraisal action is not a “Securities Claim” as defined in the applicable directors’ and officers’ (“D&O”) liability insurance policy. Consequently, the court ruled that the insured was not entitled to coverage for defense costs and pre-judgment interest incurred in connection with an appraisal proceeding. In this article, partner Howard Epstein and special counsel Theodore Keyes discuss this recent decision in In re Solera Insurance Coverage Appeals and its impact as precedent.