{"id":2583,"date":"2014-11-04T16:25:57","date_gmt":"2014-11-04T16:25:57","guid":{"rendered":"http:\/\/www.joneslemongraham.com\/blog\/?p=2583"},"modified":"2021-12-21T20:03:09","modified_gmt":"2021-12-21T20:03:09","slug":"guilty-plea-means-private-company-do-insurer-may-recoup-defense-costs-from-directors-and-officers","status":"publish","type":"post","link":"https:\/\/www.joneslemongraham.com\/blog\/guilty-plea-means-private-company-do-insurer-may-recoup-defense-costs-from-directors-and-officers\/","title":{"rendered":"Guilty plea means private company D&#038;O insurer may recoup defense costs from directors and officers"},"content":{"rendered":"<p>by <a href=\"http:\/\/www.joneslemongraham.com\/attorneys.html?Attorney=Graham\">Christopher Graham<\/a> and <a href=\"http:\/\/www.joneslemongraham.com\/attorneys.html?Attorney=Kelly\">Joseph Kelly<\/a><\/p>\n<p><a href=\"http:\/\/www.joneslemongraham.com\/blog\/wp-content\/uploads\/2013\/10\/Virginia.jpg\"><img loading=\"lazy\" src=\"http:\/\/www.joneslemongraham.com\/blog\/wp-content\/uploads\/2013\/10\/Virginia-300x300.jpg\" alt=\"Virginia\" width=\"300\" height=\"300\" class=\"alignnone size-medium wp-image-463\" srcset=\"http:\/\/www.joneslemongraham.com\/blog\/wp-content\/uploads\/2013\/10\/Virginia-300x300.jpg 300w, http:\/\/www.joneslemongraham.com\/blog\/wp-content\/uploads\/2013\/10\/Virginia-150x150.jpg 150w, http:\/\/www.joneslemongraham.com\/blog\/wp-content\/uploads\/2013\/10\/Virginia.jpg 325w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/a><\/p>\n<p>It was a very busy summer and early fall here at Jones Lemon &amp; Graham. So we didn&#8217;t have time for our D&amp;O Digest. As we get back into our blogging routine, we&#8217;re posting brief descriptions of some recent D&amp;O decisions we missed in the past few months. Our first post is about <em>Protection Strategies, Inc. v. Starr Indemnity &amp; Liability Co.<\/em>, Case No. 1:13-cv-00763 (E.D. Va. Apr. 23, 2014), a case we wrote about in October 2013 <a href=\"http:\/\/www.joneslemongraham.com\/blog\/virginia-do-insurer-obligated-to-defend-insureds-served-with-search-warrant-and-subpoena\/\">here<\/a>. We explained then how the court held that, given the policy&#8217;s Claim definition, a Private Company D&amp;O insurer had a duty to defend insureds served with a search warrant and subpoena. But in a more recent decision available on PACER, the court held that the insurer could get it&#8217;s money back! The policy included wording requiring the insureds to repay the insurer if it was determined that they weren&#8217;t entitled to payment. The insureds pled guilty to Federal criminal charges of fraud and conspiracy. And those guilty pleas triggered the policy&#8217;s &#8220;profit,&#8221; &#8220;fraud,&#8221; and &#8220;prior knowledge&#8221; exclusions and the insureds&#8217; repayment obligations. What we can&#8217;t tell from the decision is whether the insurer was able to collect any of the money it was owed. Winning is one thing; collecting is another!<\/p>\n<p><strong>Tags:<\/strong> D&amp;O, Virginia, personal profit exclusion, dishonesty exclusion, fraud, prior knowledge exclusion, private company directors and officers liability insurance policy, management liability insurance policy, guilty plea, insurer&#8217;s ability to recoup defense expenses, duty to defend<\/p>\n<!-- AddThis Advanced Settings generic via filter on the_content --><!-- AddThis Share Buttons generic via filter on the_content -->","protected":false},"excerpt":{"rendered":"<p>by Christopher Graham and Joseph Kelly It was a very busy summer and early fall here at Jones Lemon &amp; Graham. So we didn&#8217;t have time for our D&amp;O Digest. As we get back into our blogging routine, we&#8217;re posting brief descriptions of some recent D&amp;O decisions we missed in the past few months. Our [&hellip;]<!-- AddThis Advanced Settings generic via filter on get_the_excerpt --><!-- AddThis Share Buttons generic via filter on get_the_excerpt --><\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[3],"tags":[],"_links":{"self":[{"href":"https:\/\/www.joneslemongraham.com\/blog\/wp-json\/wp\/v2\/posts\/2583"}],"collection":[{"href":"https:\/\/www.joneslemongraham.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.joneslemongraham.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.joneslemongraham.com\/blog\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.joneslemongraham.com\/blog\/wp-json\/wp\/v2\/comments?post=2583"}],"version-history":[{"count":18,"href":"https:\/\/www.joneslemongraham.com\/blog\/wp-json\/wp\/v2\/posts\/2583\/revisions"}],"predecessor-version":[{"id":2638,"href":"https:\/\/www.joneslemongraham.com\/blog\/wp-json\/wp\/v2\/posts\/2583\/revisions\/2638"}],"wp:attachment":[{"href":"https:\/\/www.joneslemongraham.com\/blog\/wp-json\/wp\/v2\/media?parent=2583"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.joneslemongraham.com\/blog\/wp-json\/wp\/v2\/categories?post=2583"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.joneslemongraham.com\/blog\/wp-json\/wp\/v2\/tags?post=2583"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}