D&O-Insurance: Serial damage clause

The OLA 2008 (directors and officers liability insurance) provides for a "liability insurance" and "liability defense protection". According to the “serial damages clause” (Article 8.4. OLA 2008) several insurance cases are viewed as one case if they result from the same breach of duty. The various insurance cases are then treated as if all the cases have occurred at the time of the first claim or at the time of the first initiated proceeding. In the present case the identical breaches led to criminal investigations and due to a dismissal also to proceedings before the labor court. Due to the identity of the breaches this events are considered according to the “serial damage clause” to be a single damage claim and as such as a single insurance case. [OGH 11.19.2015, 7 Ob 137/15w]