​Louisville, Kentucky partners Edward M. O'Brien and James M. Burd obtained a favorable decision in Kentucky state court denying coverage for claims asserted by shareholders and a corporate dissolution committee against directors and officers of a large tobacco cooperative. The plaintiffs and dissolution committee asserted claims alleging corporate mismanagement and malfeasance against various directors and officers. The directors and officers insurer defended under reservation of rights and sought a declaration from the court holding that the claims were barred by an insured vs. insured exclusion set forth in the applicable insurance policy. After extensive briefing and argument, the court agreed with Eddie and Jim and concluded that the claims were barred by the exclusion. The court also dismissed the plaintiffs' extra-contractual bad faith claims against the insurer. Plaintiffs were demanding the full policy limits of $2 million and millions more in damages for the bad-faith claims.