Federal Insurance Company v. Singing River Health, No. 15-60876 (5th Cir. 2017)Annotate this Case
This insurance coverage dispute between Federal and Medical Insureds related to various underlying lawsuits arising from SRHS's alleged underfunding of its Retirement Plan and Trust. Federal sought a declaration that it had limited liability and SRHS counterclaimed, seeking declaratory relief and alleging waiver, estoppel, civil conspiracy, breach of contract, tortious breach of contract, breach of fiduciary duty, breach of the duty of good faith and fair dealing, bad faith, interference with contract and business relations, and conversion. The court rejected Medical Insureds' argument that Moeller v. American Guarantee & Liability Insurance Co. and the policy language required Federal to pay Defense Costs without regard to policy limits; concluded that the district court erred in determining that Defense Costs did not erode the policy limit, and Federal was entitled to judgment on this issue; and concluded that the constitutional claims fell within the Employee Benefits Program Laws exclusion 7(e) and the district court did not err in determining that there was no Executive Liability, Entity
Liability, and Employment Practices Liability (ELI/EPL) Coverage as to the identified claims. Accordingly, the court reversed the district court's grant of summary judgment for Medical Insureds, rendered judgment for Federal, and affirmed the district court's grant of partial summary judgment for Federal regarding ELI/EPL Coverage.