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SCHWARTZ v. LIBERTY MUT. INS. CO.

Docket Nos. 07-2794-cv, 07-2818-cv.

539 F.3d 135 (2008)

Bernard L. SCHWARTZ, Plaintiff-Counter-Defendant-Appellee, Twin City Fire Insurance Company, Defendant-Cross-Defendant-Counter-Claimant-Appellee, Royal Indemnity Company, Defendant-Cross-Defendant, v. LIBERTY MUTUAL INSURANCE COMPANY, Defendant-Cross-Claimant-Appellant, North American Specialty Insurance Company, Defendant-Counter-Claimant-Cross-Claimant-Appellant.

United States Court of Appeals, Second Circuit.

Decided: August 19, 2008.

Attorney(s) appearing for the Case

Edward M. Spiro, Morvillo, Abramowitz, Grand, Iason, Anello & Bohrer, P.C., New York, N.Y. (Elkan Ambramowitz, Thomas M. Keane, Sarah J. North, on the brief), for Plaintiff-Counter-Defendant-Appellee Bernard L. Schwartz.

Catherine E. Stetson, Hogan & Hartson L.L.P., Washington, DC (William J. Bowman, Paul A. Werner, Hogan & Hartson LLP, Ira G. Greenberg, John F. McCarrick, Edwards Angell Palmer & Dodge LLP, on the brief), for Defendant-Cross-Defendant-Counter-Claimant-Appellee Twin City Fire Insurance Company.

David J. Margules, Bouchard Margules & Friedlander, P.A., Wilmington, DE (Sean M. Brennecke, of counsel, Joshua Dratel, Law Offices of Joshua Dratel, New York, NY, on the brief), for Defendant-Cross-Claimant-Appellant Liberty Mutual Insurance Company.

Peter A. Stroili, D'Amato & Lynch, New York, N.Y. (Robert E. Kushner, on the brief), for Defendant-Counter-Claimant-Cross-Claimant-Appellant North American Specialty Insurance Company.

Before: JACOBS, Chief Judge, POOLER, Circuit Judge, RESTANI, Judge.

DENNIS JACOBS, Chief Judge:

The day before he was to testify as a defendant in a securities class action, Bernard L. Schwartz agreed to a $20 million settlement. He later brought suit in the United States District Court for the Southern District of New York (Castel, J.) against the four companies that covered him for directors and officers liability. He sued the primary insurer, Twin City Fire Insurance Company, for bad faith refusal to settle and breach of...

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