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In re: Aaura, Inc.
September 1, 2006

04 B 42333
397 B.R. 379

In re Bell; In re Nevitt
August 18, 2006

05 B 77798, 05 B 77943

06 B 00094

Judge A. Benjamin Goldgar

Judge Jack B. Schmetterer

Chief Judge Pamela S. Hollis

01 B 26090, (Jointly Administered), 02 A 01680

Chapter 7 Trustee sued former directors and officers of debtor, then brought declaratory judgment action against D&O liability insurance carriers. Insurers had denied coverage for lack of notice. Parties filed six cross-motions for summary judgment on declaratory judgment action. Held: Purported "notice of circumstances" letter sent by debtor to insurers during policy period was deficient and did not constitute notice. Insurers had not waived their right to make that argument, neither were they estopped from making it. Insurers did not act in bad faith in denying coverage. The difference between claims made and occurrence liability policies is discussed.