Allmerica Financial Corporation v. Certain Underwriters at Lloyd's London who are members of Syndicates 1212, 435, 1173, 1207, & 623

Agnes, A.J.

1. Introduction

This is a civil action in which the plaintiffs seek Declaratory Judgment and damages of more than 39 million dollars for breach of contract under a policy of insurance issued by the defendant (Policy number FD971641). Plaintiff Allmerica seeks to recover the costs it incurred in defending and eventually settling a class action lawsuit in federal court (the so-called “Bussie Class Action”). The defendant declines to reimburse Allmerica under the policy on grounds that certain exclusions from coverage apply to Allmerica’s claim.

2. Background

The present dispute relates…