• March 3, 2009

Michael Foods, Inc. has brought an insurance coverage claim against U.S. Specialty Insurance Co. in United States District Court (D. Minn.) based on a coverage claim for Michael Foods’ costs in connection with responding to a subpoena of the U.S. Department of Justice. The policy is a $10,000,000 Directors & Officers policy. The subpoena was in regard to an antitrust investigation, which appears to have been closed without action.

Will the Court hold that a government subpoena is a “claim” under the policy, defined to include “a written demand for non-monetary relief”? Not having researched the question, I should be reluctant to speculate but my gut tells me that this could be a stretch for the insured.

The case has been assigned to U.S. District Court Judge John R. Tunheim. Michael Foods, Inc. v. U.S. Specialty Insurance Company, 0:09-cv-00492-JRT-AJB. The Complaint does not state a dollar amount aside from alleging the $75,000 jurisdictional minimum for a diversity claim.

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