Insurance — CGL policies — D&O endorsements

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Wisconsin Court of Appeals

Civil

Insurance — CGL policies — D&O endorsements

In these consolidated appeals, the individual unit owners of the Landing Condominiums of Waukesha claim that the condominium association’s directors and officers breached their fiduciary duties. The directors sought bankruptcy protection and were dismissed from the lawsuit. The issue is whether a directors and officers (D&O) endorsement to a commercial general liability (CGL) policy State Auto Insurance Company issued to the Association still provides coverage for the claims against the directors. The circuit court concluded that the directors’ dismissals effectively discharged their liability, declared that State Auto had no duty to defend or indemnify any of the parties and dismissed all claims against it. The owners appeal on the basis that, under the D&O endorsement, an insured’s bankruptcy does not relieve State Auto of its obligations. We agree and reverse. This opinion will not be published.

2013AP888, 2013AP1538 Hollingsworth, et al. v. Landing Condominiums of Waukesha Association Inc., et al.

Dist II, Waukesha County, Dreyfus, J., Per Curiam

Attorneys: For Appellant: Abruzzo, Joseph A., Milwaukee; For Respondent: Mayer, John F., Manitowoc; Wallace, Justin F., Manitowoc