MIAMI — Law360 reported on Rivero Mestre’s representation of Westernbank’s officers and directors in their suit with the Federal Deposit Insurance Corporation.
A Puerto Rico federal judge on Wednesday rejected insurers’ attempts to apply an insured v. insured exclusion to the Federal Deposit Insurance Corp.’s claims seeking $176 million from former executives of Westernbank Puerto Rico, while expanding coverage in a policy year the insurers argued was out of reach.
U.S. District Judge Gustavo Gelpi sided against American International Group Inc. and other insurers on summary judgment motions in a coverage battle stemming from the FDIC’s litigation seeking damages from Westernbank’s former directors and officers after the agency took over as the bank’s receiver.
AIG argued that the FDIC had stepped into the shoes of the bank when bringing these claims, and thus, an exclusion for claims from one insured — the bank — against another insured — the directors and officers — applied. But Judge Gelpi said there was a question of fact as to whether the FDIC was representing depositors and account holders after seeing its depositors’ insurance fund depleted by more than $3.3 billion.
“The court does not accept AIG’s argument that the FDIC fails to specify who or what it represents and that such failure merits summary judgment,” Judge Gelpi said.
Click here to see the full article.
Click here to see the D&Os’ motion to clarify the court’s advancement order, the reply in support of the motion to clarify, the response to AIG’s motion for summary judgment relating to the insured v. insured exclusion and the order.
About Rivero Mestre LLP
Rivero Mestre, from its offices in Miami and New York, represents clients from investigation to verdict and appeal in complex business disputes in U.S. federal courts, state courts, and domestic and international arbitration proceedings. The firm’s practice focuses primarily on representing corporate and institutional clients in a broad range of complex commercial disputes including financial institution matters, intellectual property disputes, and litigation and arbitration relating to Latin American trade and investment. For more information, visit www.riveromestre.com.