Anthony P. DeMichele obtained summary judgment for an insurance company in a coverage dispute involving one of its insureds. The insured, an attorney, was sued in two separate state court actions based upon his involvement in several real estate investments.
In the underlying litigation, two individuals had filed separate actions against the insured claiming he misrepresented information about the investment opportunities. After the investments were made, the individuals alleged that the insured misappropriated the money for his personal gain. The insured alleged that he provided legal services for the real estate holding company that was involved in the investments, and therefore, his malpractice insurance covered the claims. As a result, the insured submitted the claims to his insurance company for coverage.
Mr. DeMichele, on behalf of the insurance company, initiated a declaratory judgment action in the United States District Court for the Eastern District of Pennsylvania seeking a declaration from the court as to the parties’ rights under the insurance policy at issue. At the conclusion of extensive discovery, Mr. DeMichele moved for summary judgment arguing, among other things, that exclusions in the insurance policy precluded coverage of the claims. Based upon the language of the exclusions, Mr. DeMichele argued that the insurance company did not have a duty to defend or a duty to indemnify its insured with regard to the claims that were asserted in the underlying state court actions.
The insured responded by filing a motion for summary judgment and argued that the policy exclusions did not apply, and therefore, a duty to defend and a duty to indemnify existed.
The district court agreed with Mr. DeMichele’s position and granted the insurance company’s motion for summary judgment while at the same time denying the insured’s motion for summary judgment. Based upon the court’s decision, the insurance company did not owe a duty to defend or indemnify its insured for the claims that were asserted in the state court actions.