Twin City Fire Insurance v. City of Madison

DUHÉ, Circuit Judge:

Plaintiff Twin City Fire Insurance Company sued its insured, the City of Madison, Mississippi, for a declaratory judgment denying coverage under a policy issued to Madison and for reimbursement of defense costs concerning two lawsuits brought against Madison. After settlement of the underlying claims for $250,000, Twin City dropped its claim for defense costs and added a claim herein for reimbursement of the settlement amount. Madison counterclaimed asserting coverage under the policy and liability based on estoppel. Madison also asserted third-party tort claims against…