Network Firm News

Wednesday, August 01, 2007

Bill Cronin of Corr Cronin representing ATT Mobility in an action for coverage under a D+O policy won a verdict for $9.5M in defense expenses incurred in defending the directors of Telecorps Corporation who had approved a proposed merger with ATT Wireless. The defense expenses were incurred by the directors defending a consolidated lawsuit brought by shareholders of Telecorps who disagreed with the proposed price for Telecorps stock that the directors had approved. When the transaction closed, Telecorps was merged into ATT and ATT inherited Telecorps' obligations to indemnify Telecorps' directors in the lawsuit.

When ATT sued the insurer as a successor in interest to the benefits of Telecorps' D+O policy, the insurer disputed the reasonableness of the directors' defense expense claim.

After trial in Delaware Superior court a jury of 12 returned a unanimous verdict in AT+T's favor awarding all the defense costs sought. In addition, the jury found that the insurer acted in bad faith which will will entitle Corr Cronin to recover attorneys' fees in the coverage action. In addition, the firms seeks prejudgment interest.

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