United States Aviation Underwriters, Inc. v. Olympia Wings, Inc.

W. EUGENE DAVIS, Circuit Judge:

The principal disputes in this litigation, which followed an airplane crash, revolve around the insurer’s denial of coverage. During the pendency of litigation the liability insurer, United States Aviation Underwriters (USAU), declined to provide an unqualified defense and filed a declaratory judgment challenging coverage. Less than a month later, the insured, Olympia Wings, agreed to entry of a consent judgment against it and in favor of the survivors of Ronald Mamey, a victim of the crash, in an amount equal to the liability policy limits. Following trial, the…