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Markus Braun withdraws his appeal: Dispute over D&O insurance.
According to a report by LTO Online from September 22, 2023, the former CEO of Wirecard, Markus Braun, has withdrawn his appeal in which he wanted to oblige the Swiss insurance group Swiss Re to provide 10 million euros. This sum corresponds to the coverage of his liability insurance for directors and managers (D&O policy). The Düsseldorf Regional Court (LG) had already rejected an application for an interim injunction in July because there was a serial damage clause in the insurance contract. This clause states that all insured events arising from the same breach of duty are grouped together as one event and are deemed to have occurred when the first event occurs. Markus Braun then had...
Markus Braun withdraws his appeal: Dispute over D&O insurance.
According to a report by LTO Online from September 22, 2023, the former CEO of Wirecard, Markus Braun, has withdrawn his appeal in which he wanted to oblige the Swiss insurance group Swiss Re to provide 10 million euros. This sum corresponds to the coverage of his liability insurance for directors and managers (D&O policy).
The Düsseldorf Regional Court (LG) had already rejected an application for an interim injunction in July because there was a serial damage clause in the insurance contract. This clause states that all insured events arising from the same breach of duty are grouped together as one event and are deemed to have occurred when the first event occurs.
Markus Braun then lodged an appeal with the Düsseldorf Higher Regional Court (OLG). However, the 4th Civil Senate of the Higher Regional Court came to the conclusion that the appeal had no chance of success. Braun has been in custody for more than three years. As a result, he withdrew his appeal on August 15.
The OLG justified the decision, among other things, by the fact that a summary examination of the insurance contract had shown that there was no insurance cover. In addition, Braun had failed to initiate main proceedings against the rejection of the insurance benefit within three years.
The impact of this case on the market, the consumer or the industry is manifold. On the one hand, it shows that not every claim for insurance benefits is successful and that insurance contracts can contain certain exclusion clauses. In addition, the case may have implications for liability regulations for directors and managers of companies. If insurance companies refuse to pay and courts uphold these decisions, this could lead to greater personal liability for managers. This could, in turn, lead managers to weigh their decisions even more carefully and to protect themselves more against liability claims.
Source: According to a report by LTO Online (https://www.lto.de/recht/kanzleien-unternehmen/k/markus-braun-d-o-versicherung-managerhaftpflicht-lg-olg-duesseldorf-berufung/)
Read the source article at www.lto.de