Lor, Inc. v. Seumas Iain Cowley, as Representative of Those Certain Underwriters at Lloyd's, London

RHESA HAWKINS BARKSDALE, Circuit Judge:

At issue is whether the punitive damages exclusion in the policy by certain Underwriters at Lloyd’s precludes coverage for their insured, Lor, Inc., for its liability under the Alabama Wrongful Death Act, for which the only recoverable damages have been judicially interpreted to be punitive. Because those damages are not punitive as that term is generally understood, the exclusion is not applicable. We REVERSE and RENDER.

I

In December 1989, Lor obtained an excess insurance policy from Underwriters, containing an exclusion for punitive damages. Several…