NORTHROP GRUMMAN INNOVATION SYSTEMS, INC. v. ZURICH AMERICAN INSURANCE COMPANY

No. C.A. No. N18C-09-210 PRW CCLD.

NORTHROP GRUMMAN INNOVATION SYSTEMS, INC., Plaintiff, v. ZURICH AMERICAN INSURANCE COMPANY, CERTAIN UNDERWRITERS AT LLOYDS OF LONDON, CONTINETAL CASUALTY INSURANCE COMPANY, CAROLINA CASUALTY INSURANCE COMPANY, TRAVELERS CASUALTY AND SURETY COMPANY OF AMERICA, NATIONAL UNION FIRE COMPANY OF PITTSBURGH, PA, U.S. SPECIALTY INSURANCE COMPANY, TWIN CITY FIRE INSURANCE COMPANY, ALLIED WORLD ASSURANCE COMPANY, STARR INDEMNITY & LIABILITY COMPANY, XL SPECIALTY INSURANCE COMPANY, BERKLEY INSURANCE COMPANY, QBE INSURANCE CORPORATION, Defendants.

Superior Court of Delaware.

Decided: February 2, 2021.


Attorney(s) appearing for the Case

David J. Baldwin, Esquire , Peter C. McGivney, Esquire , BERGER HARRIS LLP, Wilmington, Delaware; Barry J. Fleishman (argued), Esquire, Joseph D. Jean (argued), Esquire, Tamara D. Bruno, Esquire , PILLSBURY WINTHROP SHAW PITTMAN LLP, Washington, D.C., Attorneys for Plaintiff Northrop Grumman Innovation Systems, Inc.

Bruce W. McCullogh, Esquire , BODELL BOVÉ, LLC, Wilmington, Delaware; Wayne E. Borgeest, Esquire , Matthew I. Schiffhauer, Esquire , KAUFMAN BORGEEST & RYAN LLP, New York, New York, Attorneys for Defendant Certain Underwriters at Lloyd's of London.

Bruce W. McCullogh, Esquire , BODELL BOVÉ, LLC, Wilmington, Delaware; David F. Cutter (argued), Esquire, Jonathan R. Walton, Esquire , Emily R. Tripicchio, Esquire , BATESCAREY LLP, Chicago, Illinois; Karen Ventrell, Esquire , CNA COVERAGE LITIGATION GROUP, Washington, D.C., Attorneys for Defendant Continental Casualty Company.

Bruce W. McCullogh, Esquire , BODELL BOVÉ, LLC, Wilmington, Delaware; David F. Cutter (argued), Esquire, Jonathan R. Walton, Esquire , Emily R. Tripicchio, Esquire , BATESCAREY LLP, Chicago, Illinois, Attorneys for Defendant Carolina Casualty Insurance Company.

Robert J. Katzenstein, Esquire , Kathleen M. Miller, Esquire , SMITH KATZENSTEIN & JENKINS, LLP, Wilmington, Delaware; Michael L. Manire (argued), Esquire, Craig W. Kavanagh, Esquire , MANIRE GALLA CURLEY LLP, New York, New York, Attorneys for Defendant Travelers Surety and Casualty Company of America.

Timothy S. Martin, Esquire , WHITE AND WILLIAMS LLP, Wilmington, Delaware; Sean P. Mahoney (argued), Esquire, WHITE AND WILLIAMS LLP, Philadelphia, Pennsylvania, Attorneys for Defendant National Union Fire Insurance Company of Pittsburgh, Pa.

Robert J. Katzenstein, Esquire , SMITH KATZENSTEIN & JENKINS, LLP, Wilmington, Delaware; Joseph A. Bailey III, Esquire , M. Addison Draper (argued), Esquire, CLYDE & CO US LLP, Washington, D.C., Attorneys for Defendant U.S. Specialty Insurance Company.

Robert J. Katzenstein, Esquire , SMITH KATZENSTEIN & JENKINS, LLP, Wilmington, Delaware; Ronald P. Schiller, Esquire , Bonnie M. Hoffman, Esquire , Cary L. Rice, Esquire , HANGLEY ARONCHICK SEGAL PUDLIN & SCHILLER, Philadelphia, Pennsylvania, Attorneys for Defendant Twin City Fire Insurance Company.

Eileen M. Ford, Esquire , MARKS, O'NEILL, O'BRIEN, DOHERTY & KELLY, P.C., Wilmington, Delaware; David H. Topol, Esquire , Matthew W. Beato, Esquire , WILEY REIN LLP, Washington, D.C., Attorneys for Defendant Allied World National Assurance Company.

Barry M. Klayman, Esquire , COZEN O'CONNOR, Wilmington, Delaware; Michael R. Davisson (argued), Esquire, COZEN O'CONNOR, Los Angeles, California, Attorneys for Defendant Starr Indemnity & Liability Company.

John C. Phillips, Jr., Esquire , David A. Bilson, Esquire , PHILLIPS McLAUGHLIN & HALL, P.A., Wilmington, Delaware; Geoffrey W. Heineman, Esquire , Jung H. Park (argued), Esquire, ROPERS MAJESKI KOHN & BENTLEY, P.C., New York, New York, Attorneys for Defendant Berkley Insurance Company.

David C. Malatesta, Esquire , KENT & McBRIDE, P.C., Wilmington, Delaware; David A. Wilford, Esquire , Anthony J. D'Agostino (argued), Esquire, WILFORD CONRAD LLP, Barrington, Illinois, Attorneys for Defendant QBE Insurance Corporation.


MEMORANDUM OPINION AND ORDER

This sprawling insurance coverage dispute involves one transaction, two alleged federal securities law violations, three policy towers, seven motions, and a baker's dozen parties. Northrop Grumman Innovation Systems, Inc. ("Northrop") asserts its insurance companies...

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