Jones, Monteleone, LaPorta and Korman Defeat Appellate Motion for Stay of Summary Judgment Award for Directors & Officers Insurer Pending Appeal of SameNovember 14, 2017 | Michael J. Jones | Cheryl F. Korman | Joseph Monteleone | Anthony J. LaPorta | | |
Michael Jones, Joseph Monteleone, Anthony La Porta and Cheryl Korman defeated an insured’s efforts to obtain a stay of an award of summary judgment in favor of our client. Michael successfully argued to the trial judge that the former CEO of a defunct online video management company is not entitled to $5 million in insurance coverage under a D&O insurance policy issued by our client to the video management. The trial court also ruled that Hudson was entitled to reimbursement of the more than $1.2 million in defense expenses paid on behalf of the former CEO prior to the granting of summary judgment. The former CEO was seeking coverage in connection with a civil action filed by the SEC against the former CEO and the former CFO alleging that they falsified the financial condition of a public company and misled investors and auditors about the company’s revenues and ability to deliver the products it was touting.
The former CEO filed an emergent application for a preliminary injunction and a motion for a stay pending his appeal of the award of summary judgment in our client’s favor. Michael and Cheryl successfully argued before the First Department that the former CEO was not entitled to a preliminary injunction, in part, because he did not demonstrate irreparable harm. Justice Moulton denied the application for a preliminary injunction and set a briefing schedule for the application for a stay, which was subsequently denied by a full panel of the First Department.