August 6, 2012

BDO Seidman denied insurance coverage for $55 million punitive damages award

Last year we reported on a $55 million punitive damages award against accounting firm BDO Seidman in Florida State Court.  That was one of the biggest punitive awards of 2011, although it didn't make our top five.

Last week a judge in New York ruled that the $55 million award is not covered by insurance.  (Certain Underwriters at Lloyd'S v BDO Seidman LLP, 2012 NY Slip Op 51425(U).)  The ruling confirms that, despite the views of some commentators, defendants should not expect coverage for punitive damages awards.