Director & Officer Liability
"The Present is a Point just passed."
- David Russell
Directors and officers can be exposed to numerous causes of action during their tenure. These often include lawsuits imposing strict liability, slander, breach of fiduciary duty (including shareholder derivative suits), Sarbanes-Oxely, economic torts, simple negligence through omissions and other employment-related claims.
In addition to the causes of actions mentioned above, restrictions on competition by a former employee are a rapidly increasing cause of litigation involving directors and officers. These generally involve one or more of the following: trade secrets, duties of loyalty (including breach of fiduciary duty), noncompetition promises and transfers of ownership.
At times, these causes of action can lead Directors & Officers into a claim of Tortious Interference with Prospective Economic Advantage. These claims are usually grounded in violations, or alleged violations of non-compete agreements and breach of confidentiality agreements.
While General Liability insurance policies do not generally cover any of the above causes of action, Directors and Officers policies often provide coverage. Many D&O policies allow for choice of attorney by the Directors and Officers. Contact SO&L and we will assist you in determining whether you have choice of counsel.
And if you do not have the protection of a D&O policy, call SO&L today. The passage of time is not usually in the best interest of Directors and Officers with a legal problem.
We invite you to call us at 818-461-8500 or you may prefer to use our Confidential Contact Form.