In Stein v. Axis Insurance Company, 10 Cal.App.5th 673
(March 8, 2017), the California Court of Appeal reversed the trial
court's entry of judgment after issuing an order sustaining
defendant Houston Casualty Company's ("HCC") demurrer
to a complaint for declaratory relief and bad faith filed by
Michael Stein in connection with HCC's refusal to pay for
defense expenses incurred in connection with the appeal of a
criminal conviction under a directors and officers liability
insurance policy issued to Heart Tronics, Inc. ("Heart
Tronics"). The parties' dispute arose out of a grand jury
charge indicting Stein with 14 counts of mail, wire, and securities
fraud; money laundering and obstruction of justice. On May 20,
2013, a jury found Stein guilty on all counts and he was sentenced
to 17 years in prison and ordered to forfeit over $5 Million. Stein
appealed the judgment, and in January 2017, the 11th Circuit
confirmed his conviction, but vacated the sentence and remanded
