AT&T v. Clarendon America

Summary

In this oral argument the insured seeks coverage, under multiple primary and excess policies, for defense cost and other expenses arising out of two stockholder suits. The Superior Court granted partial summary judgment to the insurers, holding that each lawsuit under consideration constitutes one “Claim,” and both claims were barred under the policies’ prior litigation exclusions. The Delaware Supreme Court concluded that the trial court misconstrued the term “Claim,” and held that each pleaded cause of action may constitute a separate claim. The Supreme Court remanded the case to the trial court to consider, how many “Claims” are at issue, and how (if at all) the newly identified “Claims” affect the coverage analysis.