Liberty Mutual, Travelers Win Bid to Duck Private Equity Dispute

Two excess insurers are off the hook for costs related to litigation between the co-founders of private equity management firm Fox Paine & Company LLC, a California appellate court ruled.

One policy issued by St. Paul Mercury Insurance Co., a unit of Travelers Cos., “is triggered only if the ‘total amount of’ underlying limits ‘has been paid,’” the California Court of Appeal, First District, said. And a policy from Liberty Mutual Insurance Co. “‘only provides coverage’ when the underlying limit of liability ‘is exhausted’ by the underlying insurers ‘paying or being held liable to pay,’” the court said.

“Such ...