Millennium Laboratories, Inc. v. Allied World Insurance

ORDER:

(1) GRANTING PLAINTIFF’S MOTION FOR SUMMARY JUDGMENT; AND

(2) DENYING DEFENDANT’S MOTION FOR SUMMARY JUDGMENT

This case arises from an insurance coverage dispute in which Plaintiff Millennium Laboratories, Iric. (“Millennium”) seeks reimbursement for the money it has spent responding to an investigation by the United States Department of Justice (“DOJ”). Millennium seeks to recover under a Forcefield Healthcare Organizations Directors and Officers Liability Policy No. 0807-1511 (“the Policy”) issued by Defendant Allied World Assurance Company (USA), Inc. (“Allied World”) for the policy period of December 1,2011 to December 1, 2012.

Millennium contends that it is entitled to payment of all defense costs related to the DOJ Investigation up to the Policy’s full $5,000,000 limits of liability. Allied World, however, claims that Millennium is limited by the Sublimits of the “Regulatory Claims Coverage” in-the Policy to $100,000 recovery, which it has already paid to Millennium.

Alternatively, Allied World argues that the “Related Claims” provision in the Policy militates against recovery and that several exclusions in the Policy, including the prior or pending litigation…