Harbor Insurance v. Essman

JOHN R. GIBSON, Circuit Judge.

Harbor Insurance Company issued a Directors and Officers insurance policy (D & 0 policy) to Tiffany Industries, Inc. and ultimately paid a series of claims brought against Tiffany’s officers and directors. Thereafter Harbor sued the representatives of Alexander Grant & Company, an accounting firm, claiming that materially false and misleading financial statements prepared by Grant for Tiffany led to Harbor’s expenditure of sums for settlement of claims and attorneys’ fees. The district court1 dismissed claims for negligent and deliberate misrepresentation on the…