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Volume XII, Number 223

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Insured Versus Insured Provision Bars Coverage

MEDFORD v. LAVERGNE (W.D. La., Mar. 31, 2010)

The plaintiff, Medford, is the CEO and Chairman of PIVoD Technologies, LLC (PIVoD). He filed suit against defendant Lavergne, a former manager of PIVoD, contending that Lavergne "commenced a campaign designed to undermine the integrity and credibility. . .of Medford in the eyes of PIVoD text membership and management." Specifically, Medford asserted that Lavergne disseminated certain e-mails containing false and unflattering information to various third persons and also made verbal comments intended to defame and embarrass Medford.

Lavergne answered the complaint and filed a third-party complaint against Twin City Fire Insurance Company alleging that Twin City issued a Directors & Officers liability policy to PIVoD under which Lavergne was entitled to indemnity and defense. Twin City contended that coverage did not exist by virtue of the Insured versus Insured exclusion.

The court stated that it was apparent that Medford and Lavergne both qualified as insureds under the policy. Accordingly, the insured versus insured provision was triggered, and there was no coverage for the defamation claims. While the court acknowledged the duty to defend is broader than the duty to indemnify, an insurer is certainly not obligated to furnish a defense if the complaint unambiguously excludes coverage as it did in the instant case.

Impact: This case is a perfect example of the exact type of spat the insured versus insured provision is intended to exclude. Here, it is apparent that the exclusion applied and the court properly determined that coverage did not exist for the purported defamation claims.

 

 

 

For a copy of this decision, click here: http://tinyurl.com/GS-PLM-April-Cases

All content © 2022 Goldberg Segalla LLPNational Law Review, Volume , Number 120
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About this Author

Sharon Angelino, Insurance Lawyer, Goldberg Segalla Law Firm
Partner

Sharon Angelino is a Goldberg Segalla partner and a member of the firm's Insurance Coverage and Extra-contractual Liability Practice Group, where her practice includes complex insurance coverage, commercial litigation and general corporate law.

Having earned a bachelor's degree in biochemistry and an M.B.A., combined with several years of working in the health care industry, Ms. Angelino brings unique blend of knowledge and experience to benefit her clients.

Ms. Angelino has more than a dozen years of insurance coverage experience in both first party and third party claims....

716-566-5411
Sharon Angelino, Insurance Lawyer, Goldberg Segalla Law Firm
Partner

Sharon Angelino is a Goldberg Segalla partner and a member of the firm's Insurance Coverage and Extra-contractual Liability Practice Group, where her practice includes complex insurance coverage, commercial litigation and general corporate law.

Having earned a bachelor's degree in biochemistry and an M.B.A., combined with several years of working in the health care industry, Ms. Angelino brings unique blend of knowledge and experience to benefit her clients.

Ms. Angelino has more than a dozen years of insurance coverage experience in both first party and third party claims....

716-566-5411
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