The legal issues presented in this case will be displayed here.

This section contains the nature of the case and procedural background.

Taylor was offered a job as a director and an officer (along with ten percent of the shares of P). Taylor accepted. Taylor served in these two positions until his employment was terminated in July 1994. P terminated Taylor's employment because he did not disclose a covenant not to compete from his former job and he misrepresented his qualifications by falsely claiming that he was an expert in client-server technology for financial institutions. In July 1996, P contracted with D for directors' and officers' liability policy (D&O) policies. D&O policies indemnify directors and officers from liability for their business decisions. This policy was a claims-made policy. It covered P for claims made during the policy period, irrespective of when those claims arose. The policy contained an 'insured vs. insured' exclusion that barred claims for coverage that are brought by directors and officers, both current and former. P missed its earnings projections in 1998 and 1999. Taylor filed a securities class action against P on November 23, 1999. Taylor solicited other P shareholders. P sought D&O coverage from D. D denied that claim based on the 'insured vs. insured' exclusion. Because Taylor was a former director and officer, the exclusion barred coverage. P filed suit against National and D. D moved to dismiss. The district court granted summary judgment in favor of D. P settled with D. P appealed this dismissal with D as the only defendant left in the suit.

The applicable rule of law for this case will be displayed here.

The court's holding and decision will be displayed here.

Legal analysis from Dean's Law Dictionary will be displayed here.