Federal Insurance v. Tyco International Ltd.

Outside director Walsh’s violation of the Martin Act did not bar his recovery of defense costs under the Federal Insurance directors and officers liability insurance obtained by Tyco. Strictly construing the policy exclusions (see Belt Painting Corp. v TIG Ins. Co., 100 NY2d 377, 383 [2003]) and according meaning to each of their terms (see Beal Sav. Bank v Sommer, 8 NY3d 318, 324 [2007]), the motion court correctly interpreted the exclusions of claims “based on, arising from, or in consequence of’ a wrongful act, rather than the language of “interrelated” and explicitly “causally connected”…