August Entertainment, Inc. v. Philadelphia Indemnity Insurance

Opinion

MALLANO, J.

This appeal raises issues concerning whether a directors and officers (D&O). liability policy covers a breach of contract claim where an officer entered into a contract without stating that he was acting on behalf of the corporation. The corporation subsequently disputed liability under the contract, and the other contracting party brought suit against the corporation and the officer, seeking to recover the contract price. The officer sought a defense from the D&O insurer, which denied the claim. The corporation and the officer settled the suit for the contract price.

In this…