TLGGR Fidelity Law

Fidelity Law

For over 40 years, TLGGR’s attorneys have been investigating, negotiating and defending claims involving fidelity insurance. Our reputation is unsurpassed and we pride ourselves on our ability to deliver thorough assessments and coverage opinions of claims in short order and to provide straight answers. TLGGR represents insurers in the investigation, analysis and litigation of claims involving employee dishonesty, lending losses, security thefts and computer crime under:

  * Financial institution bonds
  * Commercial crime policies
  * Employee dishonesty policies
  * Electronic Computer Crime Policies
  * Directors’ and officers’ liability policies

Some of TLGGR’s recent and current fidelity matters include:

Morgan Stanley v. Chubb, et al.: TLGGR is representing five defendant insurers and is lead counsel in an action brought by Morgan Stanley to recover over $21 million allegedly lost in connection with transactions involving the late Robert Maxwell. After engaging in substantial document discovery (including the creation of an electronic coded database of over 101,000 documents) and depositions, TLGGR obtained summary judgment dismissing the complaint. The interpretation of the coverages was a case of first impression. Morgan Stanley has appealed the decision.

Ernst & Young v National Union: The dishonest employee stole $4.2 million, which had been deposited with the insured accounting firm by its clients to pay tax obligations. The fidelity insurer paid $2.4 million under the client property coverage endorsement. The accounting firm then commenced suit to recover an additional $2.9 million of damages for, among other things, interest and penalties assessed by the taxing authorities and paid by the accounting firm. TLGGR obtained summary judgment in favor of the fidelity insurer, which was affirmed on appeal. The court reasoned that there was no loss of covered property, and that the accounting firm’s argument would impermissibly transform the fidelity policy into a liability policy covering any consequential damages arising from the employee’s theft.