U.S., state court rulings buffet insurer ; Despite state ruling, federal court says policyholder owed a defense.(Scottsdale Insurance Co. vs. Subscription Plus Inc. and Karleen Hillery)(Brief Article)

Business Insurance, August, 2002 by Lenckus, Dave

CHICAGO-An insurer must defend a general liability policyholder in a federal court case over a fatal work-related traffic accident even though a state court has relieved the insurer of that obligation in separate litigation against the policyholder over the same accident. Scottsdale Insurance Co.

of Scottsdale, Ariz., will not appeal the July 15 ruling by a 7th U.S. Circuit Court of Appeals panel, insurer attorney Michael R. Fitzpatrick said. The panel earlier this year, however, affirmed a district court's ruling that Scottsdale has no duty to indemnify Subscription Plus Inc. of Oklahoma City. In its latest ruling, the panel also suggested it would rule likewise in a pending duty-to-indemnify case involving Subscription Plus' president, Karleen Hillery, whom...

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