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Superior Court Grants AT&T Corp. Leave to Appeal Interlocutory Order Granting Summary Judgment

AT&T Corp. v. Clarendon America Ins. Co., C.A. No. 04C-11-167(JRJ), 2006 WL 1360934 (Del. Super. Ct. May 18, 2006). On April 25, 2006, the Superior Court granted summary judgment in favor of multiple defendants. The plaintiff, AT&T, moved to certify an appeal pursuant to Rule 42, and the Superior Court granted AT&T leave to file and interlocutory appeal. On May 31, 2006, the Delaware Supreme Court accepted the interlocutory appeal as well. The Court found that its Order of April 25, 2006, determined a substantial issue and established a legal right. The "rights" at issue were the right of multiple defendant insurers to deny coverage under D & O policies, and the right of the directors to coverage under those policies. Furthermore, the court held that considerations of justice favored interlocutory review because: 1) there were hundreds of millions of dollars at stake; 2) the parties had acknowledged the importance of early determination of the coverage issues; and 3) the Supreme Court resolving the contract interpretation issues addressed in the court's summary judgment decision would significantly affect subsequent phases of the litigation and avoid unnecessary expenditure of judicial resources Authored by: Jason C. Jowers 302-888-6860 jjowers@morrisjames.com