Hilco Capital, LP v. Federal Insurance Co., No. 620, 2008 (Del., August 10, 2009), read opinion here. This Delaware Supreme Court decision addressed whether a D & O carrier’s refusal to consent to a settlement was a breach of the implied duty of good faith and fair dealing. Delaware’s High Court said no, with 15 pages of legal reasoning to support its affirmance of the trial court.
Kevin LaCroix , an expert in D & O policy coverage issues, and author of the highly regarded blog called The D & O Diary, has performed a thorough analysis of the case here that cannot easily be duplicated, so I recommend his thoughtful insights on the case for those readers who want to learn more about this decision and how it fits in with other similar decisions by courts around the country on this topic.