In this episode of Magnum J.D.: My name is Magnum and I do what I want…..

But Houston we have a problem as Continental Casualty Company aired lots of dirty laundry in their declaratory suit against Magnum and his partners at Gauthier Houghtaling and Williams so for the consideration of the Slabbed Nation I’ve uploaded Continental’s suit plus the next 7 docket docs which includes the firm’s insurance policy, the Ocean Therapy Solutions Operating Agreement plus other goodies like the following:

Dear Mr. Jouandot:

Thank you for taking the time to speak to me and discussing Continental Casualty Company’s (“Continental”) coverage position in this matter.

Continental acknowledges that we are in receipt of the lawsuit entitled Spyridon C Contogouris Et Al v Ocean Therapy Solutions LLC . Continental has considered the availability of coverage for this matter under Lawyers Professional Liability Policy No. LAW-268085507, issued to Gauthier Houghtaling & Williams LLP (“the Firm”) for the policy period of February 3, 2011 to February 3, 2012 on a claims made and reported basis (the “Policy”). As you were advised, this will confirm that there is no coverage for this matter as presented. Following is Continental’s coverage position.

The Petition alleges that Mr. Houghtaling was involved in forming two joint ventures in connection with the BP oil spill and clean up, Ocean Therapy Solutions (“OTS”) and The Will to Drill Joint Venture. Plaintiffs allege that Mr. Houghtaling, who was initially named CEO of OTS, owned a 21.5% interest in OTS which later increased to 38% after settlement of litigation involving another party of which plaintiffs were unaware. Plaintiffs further allege that Mr. Houghtaling represented that he was acting as Plaintiffs’ attorney-in-fact in connection to both ventures. Plaintiffs allege that Mr. Houghtaling and the Firm committed malpractice.  Allegations include, but are not limited to, conflict of interest, adverse business transactions, self dealing, and negligent misrepresentation. Plaintiffs also make various allegations against Mr. Houghtaling in his capacity as an OTS member.

Continental has carefully reviewed the first amended petition and the Policy and has concluded that there is no coverage available for this matter. Exclusion F bars coverage for claims based on or arising out of an insured’s capacity as an officer, director, shareholder, partner, manager, member or trustee of any entity not named in the Policy’s Declarations. Exclusion H bars coverage for claims based on or arising out of legal services performed for an entity not named in the Declarations, if at the time of the act or omission, the percentage of ownership in such entity by an insured exceeded 10%.

Therefore, pursuant to Exclusion F, the allegations against Mr. Houghtaling in his capacity as CEO of OTS, an entity not named in the Policy’s Declarations, and not an “insured,” as defined by the Policy, are not covered claims.

Continental also denies coverage under Policy exclusion H to the extent the First Amended Petition alleges Mr. Houghtaling performed legal services for OTS, , as Mr. Houghtaling’s interest in OTS exceeded 10%.

Based on the above, we regret to inform you that there is no coverage for this claim and neither a defense nor indemnity will be provided. You may wish to engage counsel, at your own expense, to protect your interests in this matter.

Of course folks there are problems associated with making things up as you go along to accomplish a self-serving goal as the above illustrates. This whole Magnum/Costner thing frankly reminds me of when Cartman went on daytime TeeVee not that long ago…

Click the pdf for the entire 108 page document and stay tuned for the next episode of Magnum J.D. as the next installment is rumored to be a 2 hour special.  😉

sop