San Diego County Superior Court grants Plaintiffs’ motion for summary adjudication declaring that primary insurer has a duty to pay Plaintiffs’ defense costs in multiple securities actions.

On May 23, 2005, the San Diego County Superior Court entered an order granting the motion for summary adjudication of Plaintiffs declaring that defendant National Union Fire Insurance Company of Pittsburgh, PA has a duty to pay the defense costs of certain former Peregrine Systems, Inc. directors and officers in multiple securities actions pending in San Diego state and federal courts. The Court found that the essential facts were undisputed, and based on the policy language, and the fact that no court has yet ruled on National Union’s rescission claim or its policy defenses, National Union has had a duty to pay defense costs since May 2002, and that such duty continues until there is a final decision that National Union is entitled to rescind its policy. Daniel J. Bergeson, Caroline McIntyre, and Stephen D. Rockwell of Bergeson, LLP represent one of the prevailing Plaintiffs, Stephen P. Gardner, former Chief Executive Officer of Peregrine Systems, Inc.