Third- Party Coverage Actions definition
Third- Party Coverage Actions is defined in Paragraph 23 of the Agreement and Exhibit J to the Agreement. Court’s prior order (Docket No. 831, SEC Action), Underwriters have paid approximately $30.3 million for the defense costs of various of Underwriters’ Insureds. The Receiver has intervened or sought to intervene in the Third-Party Coverage Actions. The litigated resolution of the Coverage Action and the Third-Party Coverage Actions would likely cost millions of dollars and the outcome is uncertain. Recognizing the uncertainties, risks, and costs of litigation, the Receiver and Underwriters entered into formal, mediated settlement negotiations beginning in June 2015. In addition to the Receiver and Underwriters, the Examiner participated in the settlement discussions, ensuring that the perspective of the Committee—which the Court appointed to “represent[] in this case and related matters” the “customers of SIBL who, as of February 16, 2009, had funds on deposit at SIBL and/or were holding certificates of deposit issued by SIBL” (Docket No. 1149, SEC Action)—would be heard in connection with any proposed settlement involving the Insurance Policies. Following the last day of mediation, the parties continued their negotiations and arrived at a settlement, which the original Agreement documents. On June 27, 2016, the Receiver filed a motion to approve the original Agreement. (SEC Action, Doc. 2324.) The Court thereafter entered a Scheduling Order on July 12, 2016 (SEC Action, Doc. 2333), which, inter alia, authorized the Receiver to provide notice of the Agreement, established a briefing schedule on the Motion, and set the date for a hearing. On October 28, 2016, the Court held the scheduled hearing. On May 16, 2017, the Court approved the original Agreement. The Court’s approval of the original Agreement was ultimately reversed on appeal by the Fifth Circuit. The opinion reversed the Court’s approval of the original Agreement because of the following issues identified by the Fifth Circuit: (1) that the Court erred by abrogating Individual Underwriters’ Insureds’ contractual claims to the policy proceeds without affording them an alternative compensation scheme similar, if not identical to, the Receiver’s claims process (the “First Issue”) (Op. at 26); (2) that the Court erred by extinguishing Individual Underwriters’ Insureds’ extracontractual claims, if any, against Underwriters (the “Second Issue”) (id.); and (3) that the Court should clarify whether the Bar Order enjoins investors f...
Third- Party Coverage Actions is defined in Paragraph 23 of the Agreement and Exhibit J to the Agreement. various of Underwriters’ Insureds. The Receiver has intervened or sought to intervene in the Third- Party Coverage Actions. The litigated resolution of the Coverage Action and the Third-Party Coverage Actions would likely cost millions of dollars and the outcome is uncertain. Recognizing the uncertainties, risks, and costs of litigation, the Receiver and Underwriters entered into formal, mediated settlement negotiations beginning in June 2015. In addition to the Receiver and Underwriters, the Examiner participated in the settlement discussions, ensuring that the perspective of the Committee—which the Court appointed to “represent[] in this case and related matters” the “customers of SIBL who, as of February 16, 2009, had funds on deposit at SIBL and/or were holding certificates of deposit issued by SIBL” (Docket No. 1149)—would be heard in connection with any proposed settlement involving the Insurance Policies. Following the last day of mediation, the parties continued their negotiations and arrived at a settlement, which the original Agreement documents.
Third- Party Coverage Actions means those lawsuits between Underwriters and Underwriters’ Insureds relating to the Policies and/or the Stanford Entities identified in Exhibit J.