Safeway

ORDER

On September 30, 1992, this Court heard defendant’s motion for summary judgment on specified issues. John J. Dacey of McKenna & Fitting appeared for plaintiff. David B. Paynter of Lewis, D’Amato, Bris-bois & Bisgaard and Jonathan Thier of Cahill, Gordon & Reindel appeared for defendant. Having considered the papers submitted, the arguments of counsel, and the applicable law, the Court GRANTS defendant’s motion for summary judgment on the specified issues for the following reasons.

I. BACKGROUND

This case involves an insurance perspective on the corporate takeover wars fought in the mid-to-late • 1980s. Safeway Stores, Inc. (“Safeway”) brings this action for indemnification against its insurer, National Union Fire Insurance Company (“National Union”), who from May 29, 1986 through May 29, 1987, provided Safeway with a directors’ and officers’ liability insurance policy. The policy included direct coverage for directors and officers as well as a corporate reimbursement clause covering Safeway for expenditures incurred through indemnification by Safeway for the defense and settlement of claims against its officers and directors. Safeway brought the action seeking…