Sudhir P. Srivastava and Elizabeth S. Pascual - Page 6

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          the award, which brought the total actual damages and prejudgment           
          interest to $14,097,201 and the total actual and punitive damages           
          and prejudgment interest to $31,597,201.  Postjudgment interest             
          of 10 percent per annum as provided by Texas law was ordered to             
          be paid on this total sum.                                                  
               After the judgment was entered, Harte-Hanks moved for a new            
          trial, but its motion was denied on June 15, 1990.  On August 3,            
          1990, Harte-Hanks appealed the case to the Court of Appeals for             
          the Fourth Court of Appeals District, San Antonio.3  However,               
          while the appeal was pending, the parties agreed to settle.                 
          The Insurance Coverage                                                      
               Harte-Hanks' insurance coverage, which insured it against              
          loss attributable to petitioner's claims against it, was                    
          "tiered".  That is, no insurance company provided coverage for              
          the full range of Harte-Hanks' potential liability; rather,                 
          insurance was provided by several companies, and each insurance             
          company provided coverage for a defined level of liability.  The            
          television station's insurance coverage was provided as follows:            
               Insurance Company             Layer of Insurance Coverage              
                                   Lower Tier                                         
          Continental Casualty Co. (Continental) First $2 million                     
          American Casualty Company1              Same as Continental                 
          Mission Insurance Company (Mission)     $2 million to $7 million            
          Western Employer's Casualty (Western)   $7 million to $12 million           

               3  This case was styled Harte-Hanks Television, Inc. and               
          Harte-Hanks Communications, Inc. (Appellants) vs. Sudhir                    
          Srivastava, M.D. (Appellee).                                                


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