Benilde-St. Margaret's High School v. St. Paul Mercury Insurance Co.

I respectfully dissent. The trial court erred in concluding Benilde’s tax liability is a “liability claim” resulting from the administration of Benilde’s employee benefits. Despite creative characterizations by counsel, Benilde’s claim is merely an effort to recover embezzled payroll taxes, and as such, falls outside the employee benefits program administration policy’s insuring agreement. First, Benilde’s loss is not an indemnity obligation owed to a third party as required by the policy, but is a claim against CFS. Thus, the funds do not constitute an amount for which Benilde is “legally…