No Coverage for Intentional Acts or For Independent Counsel Retained Without Proper Cause

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Plaintiffs Outdoor Venture Corporation (OVC), J.C. Egnew, and L. Ray Moncrief appealed a district court judgment denying a request that their insurers reimburse them for the attorneys’ fees and costs incurred by the plaintiffs in defending themselves in underlying lawsuits. In Outdoor Venture Corporation, J.C. Egnew, and L. Ray Moncrief v. Philadelphia Indemnity Insurance Co., et al No. 20-5306. USCA 6th (December 22, 2020) the Sixth Circuit was asked to reverse the District Court’s summary judgment in favor of the insurers.

ZALMA OPINION

The Plaintiffs forgot that an insurance contract contains mutual promises that are limited by the wording of the policy. Since the Plaintiffs conduct causing the harm that was the subject of the lawsuits against them was intentional and not accidental there could be no coverage for defense or indemnity. The Plaintiffs had no right to unilaterally, without cause and without the insurers consent, retain independent counsel, they had no right to reimbursement.