United National Insurance Company v. Sst Fitness Corporation

*916CARR, D.J., delivered the opinion of the court, in which BATCHELDER, J., joined. CLAY, J. (pp. 923-28), delivered a separate dissenting opinion.

OPINION

CARR, District Judge.

Plaintiff-appellant United National Insurance Company (“United National”) appeals the denial of its motion, brought pursuant to 28 U.S.C. § 2202, for defense costs paid to its insured, defendant-appel-lee SST Fitness Corporation (“SST”). For the following reasons, we REVERSE the judgment of the district court and REMAND for further proceedings in. accordance with this decision.

BACKGROUND

SST purchased liability insurance…