Compensation Archives

Sep 2, 2016

Directors and Officers Insurance—Some Pitfalls

In recent instances, a number of boards that have come to us for representation have been chagrinned to discover that their insurance policies for directors and officers liability (“D&O”) did not fully cover claims by shareholders or unit owners. The result has been anxiety for board members, litigation expense for the building that would have been avoidable, and conflicts with the managing agent who had worked with a broker to place the insurance. It is important for board members and managing agents to understand the terms of D&O policies at the time they are purchased. All D&O insurance is not… Read more

Nov 22, 2013

SUPREME COURT DECLINES TO REVIEW FOURTH CIRCUIT CASE REJECTING ALLOCATION OF HARM ARGUMENT

On November 4, the U.S. Supreme Court refused to hear an appeal of a fourth circuit case finding that joint and several liability is the appropriate standard under the Comprehensive Environmental Response, Compensation, and Liability Act. The Court did not reject the Divisibility of Harm Standard established in Burlington N. & Santa Fe R.R. Co. v. United States; rather, it clarified what factors must be present in order for the court to apply a Divisibility of Harm Standard in apportioning liability. The court held that in order for there to be a “reasonable basis” for apportionment, the parties must be… Read more