Scottsdale Insurance Co. v. Byrne, No. 18-1526 (1st Cir. 2019)Annotate this Case
The First Circuit affirmed the decision of the district court ruling that Scottsdale Insurance Company (Scottsdale) breached its duty to defend the Wellesley Advisory Reality Fund, I, LLC (WARF) in a prior action and awarding damages, holding that there was no error or abuse of discretion in the proceedings below.
In 2014, Appellees in the instant case brought suit against WARF, acting in their capacity as representatives of the Board of Trustees for the Plumbers and Pipefitters Local 51 Pension and Annuity Funds (the Funds). Default judgment was entered against WARF, and WARF assigned the Funds its rights in WARF’s insurance policy with Scottsdale, which had refused to defend WARF. Scottsdale later brought an action against Appellees seeking a declaration that it did not owe WARF a duty to defend or indemnify under certain exclusions in the policy. The district court ultimately concluded that the the exceptions in the insurer’s policies did not relieve Scottsdale of its duty to defend WARF in the prior action, awarding the Funds the full limits of the insurance policy plus post-judgment interest. The First Circuit affirmed, holding that there was no basis for excusing Scottsdale from its duty to defend or from which to relieve Scottsdale of its obligation to pay the policy limit.