Guaranty National Insurance v. Beeline Stores, Inc.

MEMORANDUM OPINION

MYRON H. THOMPSON, Chief Judge.

In this federal lawsuit, plaintiff Guaranty National Insurance Company is seeking a declaration that it has no contractual duty, under a policy insuring against negligent administration of an employee benefit program, either to defend or indemnify defendant Beeline Stores, Inc. in an underlying state lawsuit, Smith v. Beeline Stores, Inc., et al., civil action no. CV-95-1142-TH, pending in the Circuit Court of Montgomery County, Alabama. Guaranty National seeks relief pursuant to the Declaratory Judgment Act of 1934, which provides that, “In a…