Representations and Warranties

Many companies and private equity firms are familiar with Representations and Warranties insurance, but few have experienced the claims process and even fewer know what to expect in the event of arbitration, the dispute resolution process required by most Representations and Warranties policies.  Anderson Kill has guided Representations and Warranties policyholders though the entire claims process, from claim investigation and loss valuation to resolution and, when necessary, adjudication of the claim.  Anderson Kill has successfully obtained coverage for a variety of Representations and Warranties first-party and third-party claims, including claims involving breach of the financial statement representation and multiple-based damages.

Anderson Kill’s team are experts at spotting potential coverage issues, navigating the Representations and Warranties claims process, maximizing recovery, and effectively and efficiently prosecuting Representations and Warranties claims where quick resolution is a priority. 

We have faced the following issues in Representations and Warranty matters, in both negotiations and arbitrations:

• A manufacturing company might face issues with respect to a first-party claim for breach of the financial statement representation.  
• At arbitration, one can face issues such as breach of the financial statement representation by, failing to account for manufacturing issues in accordance with GAAP. 
• We have successfully faced the so-called “actual knowledge” exclusion.
• We have defeated arguments regarding the damages calculation and EBITDA multiples used to value deals.
• When buying a professional services company a buyer might face third-party claims for coverage of defense costs and indemnity incurred in litigation.
• A buyer may face disputes arising out of breaches of the compliance with laws representation, and we have effectively addressed those arguments.

For more information about our Representations and Warranties practice group, please contact the Carrie DiCanio at (303) 353-0066, cdicanio@andersonkill.com.