Stem, Inc. v. Scottsdale Insurance Company

I. BACKGROUND

1 Stem is a technological solutions company that focuses on helping customers store and manage electrical power. See Compl. (dkt. 1) ¶ 5. Scottsdale insured Stem and its directors and officers against Loss including “damages, judgments, settlements, pre-judgment or post-judgment interest awarded by a court,” and other costs under consecutive annual “Business and Management Indemnity” policies from October 27, 2011 to October 27, 2018. See Compl. ¶ 7; see also RJN Ex. A (dkt. 15-1) (“2013–2014 Policy”) at 2 of 8. Scottsdale’s insurance coverage was subject to exclusions, including an Insured v. Insured Exclusion which barred claims “brought or maintained by, on behalf of, in the right of, or at the direction of any Insured in any capacity . . . .” 2013– 2014 Policy at 4 of 8 (emphasis in original). Additionally, “matters uninsurable under the laws pursuant to which this Policy is construed” and “punitive or exemplary damages,” were excluded from the definition of Loss. Id. at 2 of 8 (emphasis in original). In 2010, Stacey Reineccius, a former director and officer of Stem, claimed he was …