The Medical Protective Co. of Ft. Wayne, Ind. v. American International Specialty Lines, Ins. Co.

In action by plaintiff-insurance company, alleging that defendant-insurance company breached insurance contract after defendant refused to indemnify plaintiff for payment plaintiff made to settle claim that plaintiff had wrongfully failed to settle underlying insurance action against plaintiff's insured, Dist. Ct. properly found that instant policy provided coverage for plaintiff's claim, even though jury found in underlying action that plaintiff never committed "wrongful act." Record showed that plaintiff gave defendant written notice within timeframe covered by policy of potential claim that plaintiff had failed to properly settle underlying action, and policy provided that any claim that was subsequently made against plaintiff arising out of said notice was treated as claim that was made within timeframe of policy. Also, Ct. rejected defendant's contention that jury's finding in underlying action that plaintiff did not commit wrongful act should have resulted in finding that plaintiff was unable to invoke coverage under policy in first place, where: (1) defendant's interpretation of policy would require plaintiff to prove existence of its wrongful act in order to invoke coverage; and (2) if plaintiff was successful in this regard, exclusion in policy would preclude coverage because of existence of plaintiff's wrongful act.