Jerry's Enterprises, Inc. v. U.S. Specialty Insurance Co.

SHEPHERD, Circuit Judge.

Jerry’s Enterprises, Inc. (“JEI”) brought a breach of contract and declaratory judgment action against its liability insurance carrier, U.S. Specialty Insurance Company (“U.S. Specialty”). The conflict concerned the insurance carrier’s refusal to indemnify JEI for the settlement of a lawsuit. U.S. Specialty argued that the underlying suit, brought by a former director of JEI, was excluded from coverage by language in the directors’ and officers’ liability insurance policy. On cross-motions for summary judgment,- the district court 1 ruled in favor of U.S. Specialty. We…