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Monday, July 06, 2009

Ind. Decisions - One Indiana decision today from 7th Circuit

In Castronovo v. Nat'l Union Fire Ins. (ND Ind., Judge Van Bokkelen), an 11-page opinion, Judge Flaum writes:

Plaintiff John Castronovo, as assignee of Doug Lavery, Ltd. (“Lavery”) and Kenneth Lively (“Lively”), sued National Union Fire Insurance Company of Pittsburgh, PA (“National Union”) to collect the unpaid balance of a $6 million consent judgment entered against Lavery and Lively in the underlying litigation. Plaintiff alleges that Lavery and Lively were additional insureds under the National Union policy and entitled to indemnification for that portion of the consent judgment not satisfied by other insurers. On the parties’ cross-motions, the district court entered summary judgment for National Union and against plaintiff with respect to all claims, ruling that National Union is not obligated to pay the balance of the consent judgment. Plaintiff appealed, and we now affirm. * * *

National Union did not have a duty to defend and provide coverage to Lavery and Lively. Therefore, it did not breach any duty, and it was not estopped from asserting the consent clause as a bar to coverage. It was able to assert the consent clause, and Lavery and Lively materially breached a condition precedent to coverage under the National Union policy by failing to obtain National Union’s agreement prior to entering into the consent judgment. National Union is not obligated to indemnify Lavery and Lively under the consent judgment.

Posted by Marcia Oddi on July 6, 2009 11:35 AM
Posted to Ind. (7th Cir.) Decisions