Isilon Systems receives settlement for D&O coverage dispute
Clients Isilon Systems, Inc.
Jones Day represented Isilon Systems, Inc. (now part of EMC) in this D&O coverage dispute with member companies of the Hartford Insurance Group over indemnification for securities fraud lawsuits and an SEC civil action. Hartford/Twin City denied coverage in 2009 based on allegations of knowledge of wrongful acts between the time the policy was issued and the time Isilon submitted a warranty regarding statements in the application. Following initial discovery and depositions in the action, Hartford/Twin City withdrew its denial and paid its policy limit, leaving for trial the issues of further and treble damages under the Washington Insurance Fair Claims Act, bad faith and recovery of Olympic Steamship attorneys fees. This case involved issues of first impression regarding the effective date of warranty statements, “damages” under the Washington Insurance Fair Claims Act and potentially other matters. The matter settled confidentially before trial in mid-2012.
Isilon Systems, Inc. v. Twin City Fire Insurance Company et al., Case No. 2:10-cv-01392-MJP (W.D. Wash.)