Obtained dismissal of a case involving dispute over coverage obligations
Our client, a large corporation, and its subsidiaries filed petitions for relief under Chapter 11 of the Bankruptcy Code. The Bankruptcy Court accepted our client’s Joint Plan of Reorganization, and pursuant to the Plan, a recovery trust was created. Certain claims and causes of action were transferred to the trust, and the trustee was given the authority to investigate and, if appropriate, assert through litigation some or all of the trust claims. Our client emerged from the bankruptcy as a reorganized entity on the effective date of the Plan. The plaintiff, an insurance company, then brought action against certain officers and directors of our client, seeking a declaration that it has no coverage obligations under two officer and director liability insurance policies issues to the our client with respect to the claims assigned to the trustee. We moved for dismissal of the action and it was granted.