Insured v. Insured Exclusion – RIVERO MESTRE LLP | Miami + New York Attorneys | International Law | Commercial Litigation https://www.riveromestre.com Thu, 07 Aug 2025 22:13:13 +0000 en-US hourly 1 Westlaw journal discusses Rivero Mestre’s latest insurance coverage win in the Westernbank Puerto Rico case https://www.riveromestre.com/2014/08/11/westlaw-journal-discusses-rivero-mestres-latest-insurance-coverage-win-westernbank-puerto-rico-case/#utm_source=rss&utm_medium=rss Mon, 11 Aug 2014 19:31:42 +0000 http://www.riveromestre.com/?p=2943 MIAMI — Westlaw Journal Bank & Lender Liability reported on Rivero Mestre’s representation of Westernbank’s officers and directors in their suit with the Federal Deposit Insurance Corporation. A federal judge in Puerto Rico has ruled that an “insured vs. insured” exclusion in the D&O insurance policy of the failed Westernbank does not bar coverage for […]

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MIAMI — Westlaw Journal Bank & Lender Liability reported on Rivero Mestre’s representation of Westernbank’s officers and directors in their suit with the Federal Deposit Insurance Corporation.

A federal judge in Puerto Rico has ruled that an “insured vs. insured” exclusion in the D&O insurance policy of the failed Westernbank does not bar coverage for government regulators’ charges that its former directors’ reckless loan practices led to its collapse.

• Holding Co. et al. v. AIG Insurance Co. et al., No. 11-2271, 2014 WL 3378671 (D.P.R. July 9, 2014). The ruling by U.S. District Judge Gustavo A. Gelpi of the District of Puerto Rico appeared to be a double setback for the insurers that wrote D&O policies for W Holding Co., parent of the now-defunct Westernbank Puerto Rico, one of many banks taken over by the Federal Deposit Insurance Corp. after the 2008 financial crisis.

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In response to AIG’s argument that in the final analysis, the FDIC “stands in the shoes of” the owner, Judge Gelpi wrote, “The FDIC is not suing on behalf of an ‘insured’ or an ‘organization.’ It thus does not run afoul of the exclusion.”

Click here to see 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.

The directors and officers are represented by Andrés Rivero, Jorge A. Mestre, Alan H. Rolnick, Charlie Whorton, and M. Paula Aguila.

 

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 clients in a broad range of complex commercial disputes including financial institution matters, antitrust matters, intellectual property disputes, and litigation and arbitration relating to Latin American trade and investment. For more information, visit www.riveromestre.com?utm_source=rss&utm_medium=rss.

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Law360 discusses Rivero Mestre’s latest insurance coverage win in the Westernbank Puerto Rico case https://www.riveromestre.com/2014/07/10/law360-discusses-rivero-mestres-latest-insurance-coverage-win-westernbank-puerto-rico-case/#utm_source=rss&utm_medium=rss Thu, 10 Jul 2014 21:26:43 +0000 http://www.riveromestre.com/?p=2902 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 […]

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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.

The directors and officers are represented by Andrés Rivero, Jorge A. Mestre, Alan H. Rolnick, Charlie E. Whorton, and M. Paula Aguila.

 

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 clients in a broad range of complex commercial disputes including financial institution matters, antitrust matters, intellectual property disputes, and litigation and arbitration relating to Latin American trade and investment. For more information, visit www.riveromestre.com?utm_source=rss&utm_medium=rss.

 

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Rivero Mestre wins in First Circuit Court of Appeals https://www.riveromestre.com/2014/03/31/rivero-mestre-wins-circuit-court-appeals/#utm_source=rss&utm_medium=rss Mon, 31 Mar 2014 20:12:21 +0000 http://www.riveromestre.com/?p=2869 SAN JUAN, Puerto Rico — The First Circuit Court of Appeals upheld a district court’s ruling granting the advancement of defense costs for directors and officers of Westernbank Puerto Rico, despite AIG Insurance Co.’s argument of an “Insured v. Insured” exclusion. Rivero Mestre represents six former directors and officers in FDIC v. Stipes, the FDIC’s […]

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SAN JUAN, Puerto Rico — The First Circuit Court of Appeals upheld a district court’s ruling granting the advancement of defense costs for directors and officers of Westernbank Puerto Rico, despite AIG Insurance Co.’s argument of an “Insured v. Insured” exclusion.

Rivero Mestre represents six former directors and officers in FDIC v. Stipes, the FDIC’s lawsuit arising from its takeover of Westernbank Puerto Rico. The lawsuit, measured by the alleged loss, is the third largest brought by the FDIC in the current financial crisis. When AIG, formerly known as Chartis, denied coverage to the D&Os based on the “Insured v. Insured” exclusion, Rivero Mestre obtained an order requiring AIG to advance defense costs—the first such order in this banking crisis.

AIG appealed the district court’s order, but the First Circuit Court of Appeals affirmed the decision today based on Puerto Rico’s law which holds that an insurance company must advance defense costs if there is even a “remote possibility” of coverage.

“What we have is a classic battle of dueling caselaw. But such a state of affairs hurts Chartis,” states the First Circuit order. “Chartis’s suggestion that there is zero likelihood of a remote possibility of coverage falls flat.”

Click her to see the first circuit 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 clients in a broad range of complex commercial disputes including financial institution matters, antitrust matters, intellectual property disputes, and litigation and arbitration relating to Latin American trade and investment. For more information, visit www.riveromestre.com?utm_source=rss&utm_medium=rss.

 

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Andrés Rivero spoke at ABA Insurance Coverage Litigation Committee CLE Seminar https://www.riveromestre.com/2013/03/03/andres-rivero-speak-aba-insurance-coverage-litigation-committee-cle-seminar/#utm_source=rss&utm_medium=rss Sun, 03 Mar 2013 16:39:34 +0000 http://www.riveromestre.com/?p=2315 TUCSON, Ariz., — Andrés Rivero  moderated a panel at the American Bar Association’s Section of Litigation Insurance Coverage Committee’s 25th Annual CLE Seminar in Tucson, Arizona on Saturday, March 2, 2013. The panel, “Practitioner’s Pulse: Enforcing D&O Insurance Coverage Subject to the Insured v. Insured Exclusion,” discussed the insured v. insured exclusion in the wake of the […]

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TUCSON, Ariz., — Andrés Rivero  moderated a panel at the American Bar Association’s Section of Litigation Insurance Coverage Committee’s 25th Annual CLE Seminar in Tucson, Arizona on Saturday, March 2, 2013.

The panel, “Practitioner’s Pulse: Enforcing D&O Insurance Coverage Subject to the Insured v. Insured Exclusion,” discussed the insured v. insured exclusion in the wake of the FDIC’s pursuit of failed bank executives.

Rivero’s practice is focused exclusively on complex commercial litigation, including international arbitration and litigation. A former federal prosecutor, Rivero is a skilled trial lawyer with more than 20 years of experience in representing corporations and entrepreneurs in intellectual property disputes, antitrust and securities claims, and partnership and shareholder controversies.

About American Bar Association

With more than 400,000 members, the American Bar Association is the largest voluntary professional membership organization in the world. As the national voice of the legal profession, the ABA works to improve the administration of justice, promotes programs that assist lawyers and judges in their work, accredits law schools, provides continuing legal education, and works to build public understanding around the world of the importance of the rule of law.

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 clients in a broad range of complex commercial disputes including financial institution matters, antitrust matters, intellectual property disputes, and litigation and arbitration relating to Latin American trade and investment. For more information, visit www.riveromestre.com?utm_source=rss&utm_medium=rss.

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