Aetna Casualty & Surety Co. v. Continental Casualty Co.

The plaintiff (Aetna) and the defendant (Continental) disagree over their respective obligations to pay for the costs of defense of an action brought against the Mohawk Trail Regional School District Committee (Mohawk), which both Aetna and Continental insured at the relevant times. The motion judge decided that the costs of defense should be shared equally. We conclude that judgment should be entered placing the entire cost of defense on Aetna.

Mohawk discharged an employee in April, 1983, based on accusations that she had stolen money from the school. The employee sued the school committee…