Under Tennessee law, final judgment against insured officer of company in tortious interference and conspiracy to defraud action, which concerned only damages and which followed default judgment that concerned liability, triggered fraud exclusion of directors and officers (D & O) liability insurance policy, which required “judgment or other final adjudication adverse to the insured establish[ing deliberately dishonest, malicious or fraudulent] act, omission or willful violation [of law],” even though final judgment as opposed to default judgment said nothing about fraud; final judgment built upon and incorporated liability ruling of default judgment, but did not supersede it, since court had bifurcated elements of liability and damages.
Rice v. Liberty Surplus Ins. Corp., 2004, 113 Fed.Appx. 116, 2004 WL 2413393, Unreported, rehearing en banc denied.