Lowenstein Sandler advised Mist Pharmaceuticals, LLC on the matter
In December 2018, Lowenstein secured partial summary judgment reestablishing Berkley’s duty to defend Mist in an investor lawsuit pending in Delaware. Berkley initially defended Mist but then suddenly withdrew from its defense one business day before a scheduled mediation, contending that its D&O policy did not provide coverage. Berkley’s withdrawal left a significant gap in the ongoing defense obligation and complicated Mist’s ability to pursue its desired defense strategy.
Finding Berkley’s withdrawal “baseless,” the court reinstated Berkley’s duty to defend and allowed the Mist Insureds to file a motion to recover the coverage counsel fees and costs incurred to require Berkley to honor its defense obligation. In the order granting the full amount of the fees and costs requested, the judge complimented all of Lowenstein’s motion papers and the successful legal strategy employed to quickly and efficiently resolve the coverage dispute. Over the insurer’s vigorous objection, the court also upheld the reasonableness of the fees charged by the insurance specialists working on the matter.
The Lowenstein team included Lynda A. Bennett (Picture) and Eric Jesse.
Law Firms: Lowenstein Sandler LLP;
Clients: Mist Pharmaceuticals, LLC;