JP MORGAN SEC v. VIGILANT CO.

No. 61.

37 N.Y.3d 552 (2021)

37 N.Y.3d 552

183 N.E.3d 443

2021 NY Slip Op 06528

J.P. MORGAN SECURITIES INC. et al., Appellants, v. VIGILANT INSURANCE COMPANY et al., Respondents.

Court of Appeals of New York.

Decided November 23, 2021.


Attorney(s) appearing for the Case

Proskauer Rose LLP, New York City ( Steven E. Obus , Seth B. Schaffer , Francis D. Landrey and Matthew J. Morris of counsel), for appellants.

Holwell Shuster & Goldberg LLP, New York City ( Daniel M. Sullivan , James M. McGuire and Gregory Dubinsky of Counsel), and DLA Piper LLP (US), New York City ( Joseph G. Ginnerty III , Megan Shea Harwick , Eric S. Connuck and Marc A. Silverman of counsel), for Vigilant Insurance Company and another, respondents, and Kaufman, Borgeest & ryan LLP, New York City ( Scott A. Schechter , Andrew E. Oldis and Matthew Mawby of counsel), for Liberty Mutual Insurance Company, respondent.

Clyde & Co US LLP, New York City ( Edward J. Kirk , Gabriela Richeimer and Scott Schwartz of counsel), for Certain Underwriters at Lloyd's London, respondent, and BatesCarey LLP, Chicago, Illinois ( Kristi S. Nolley , R. Patrick Bedell and Lindsey D. Dean of the Illinois bar, admitted pro hac vice, of counsel), and Landman Corsi Ballaine & Ford P.C., New York City ( William Ballaine of counsel), for American Alternative Insurance Corporation, respondent.

Faegre Drinker Biddle & Reath LLP, New York City ( Marsha J. Indych of counsel), for Travelers Indemnity Company, respondent.

Selendy & Gay PLLC, New York City ( Caitlin J. Halligan and Shomik Ghosh of counsel), for National Union Fire Insurance Company of Pittsburgh, Pa., respondent.

Covington & Burling LLP, Washington, D.C. ( Mitchell F. Dolin of the District of Columbia bar, admitted pro hac vice, and Dustin Cho of counsel) and New York City ( Jordan S. Joachim of counsel), for Securities Industry and Financial Markets Association, amicus curiae.

Dewey Pegno & Kramarsky LLP, New York City ( Thomas E.L. Dewey and Christopher P. DeNicola of counsel), for James Corcoran and others, amici curiae. Public policy bars coverage where insureds act with substantial certainty that harm will result.


OPINION OF THE COURT

This appeal involves a dispute between the insured securities broker-dealers and certain excess insurers concerning the availability of coverage under a "wrongful act" liability policy for funds the insureds "disgorged" as part of a settlement with the...

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