Harris

ORDER GRANTING IN PART AND DENYING IN PART PLAINTIFFS’ MOTION FOR PARTIAL SUMMARY JUDGMENT AND DENYING DEFENDANT’S MOTION FOR SUMMARY JUDGMENT

Plaintiffs James A. Harris and Michael J. Stone have filed a motion for partial summary judgment. Defendant Gulf Insurance Company opposes the motion and cross moves for summary judgment. The matter was heard on August 8, 2003. Having considered all of the papers filed by the parties and oral argument on the motion, the Court GRANTS IN PART and DENIES IN PART Plaintiffs’ motion for partial summary judgment and DENIES Defendant’s motion for summary judgment.

BACKGROUND

Plaintiffs Harris and Stone are the former CEO and CFO, respectively, of U.S. Aggregates, Inc. Harris and Stone are defendants in several securities fraud class action lawsuits filed in May, 2001, now pending in this Court as a consolidated lawsuit under the caption In re U.S. Aggregates, Inc. Securities Litigation, Master File No. 01-1688. As officers and directors of U.S. Aggregates, Harris and Stone were insured against liability for securities fraud claims brought against them pursuant to the terms of a Directors and Officers Liability and Company Indemnification…