Clear Blue Specialty Insurance Company v. OZY MEDIA, INC.

I. BACKGROUND

19 On April 20, 2023, the Court granted in part and denied in part Defendant Ozy and 20 Watson’s request for preliminary injunction and stay of discovery, ordering Clear Blue Insurance 21 to advance defense cost as to Defendant Watson pursuant to the Directors and Officers (“D&O”) 22 Policy and staying discovery. ECF No. 82. Shortly after the Order was entered, Watson’s former 23 defense counsel, Ford O’Brien Landy LLP (“Ford O’Brien”) in New York, sent a “notice of 24 charging lien” pursuant to N.Y. Judiciary Law § 475. ECF No. 84 at 8. The notice asserts a 25 “charging lien on all claims for advancement” in this action “which lien attaches to the full amount 26 of any advancement of insurance benefits ordered and paid.” ECF No. 82-2. 27 After receiving Ford O’Brien’s letter, Clear Blue identified “at least five law firms” that have represented Watson in the defense of Watson and Ozy Media’s separate criminal proceedings in New York (the “Underlying Proceedings”). ECF No. 84 at 10. Clear Blue contends that it does not know if any of these firms have been paid for their services. Id. On April 28, counsel for Ozy and Watson informed…