Panel Sys. Inc. v. Selective Ins. Co. of Am.

The plaintiff plausibly alleges that its insurer breached its duty to defend the plaintiff and indemnify it for costs, claims, and expenses, including the settlement payout and attorneys’ fees associated with the plaintiff’s litigation against VCU Health System Authority.

Here, the parties’ agreement provided that the insurer had the right and duty to defend the plaintiff against any “suit” seeking covered damages. The underlying litigation concerned negligent actions by the plaintiff within the scope of the agreement. Allegations of intentional wrongdoing by the plaintiff are ambiguous, and under these circumstances ambiguity is construed in favor of the insured. The same reasoning applies to the insurer’s duty to indemnify the insured.

Motion for judgment on the pleadings denied.

Panel Sys. Inc. v. Selective Ins. Co. of Am., No. 3:18cv687, Feb. 25, 2019. EDVA at Richmond (Novak).

Categories: Opinions, U.S. District Court - Eastern District of Virginia

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