Insured Not Sued as Officer of Director
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Insured Not Sued as Officer of Director

The subsidiary of an insured and its officer sued an insurer for a declaratory judgment that they were insured under the parent company's policy and alleging claims for breach of contract and breach of the implied covenant of good faith and fair dealing related to an asset purchase agreement containing a noncompetition covenant. The court held the insurance policy issued to the parent company and several of its commonly owned affiliates failed to provide coverage to the director and officer of the insured's subsidiary for breach of the noncompetition covenant. The insurer had no duty to defend the owner because he was not sued as an officer or director of the insured affiliate company, instead he was sued as a party to the agreement.

Mau v Twin City Fire Insurance Co