Cay Divers, Inc. v. Raven

MEMORANDUM OPINION

The issue presented in this motion for summary judgment is whether an insurer is relieved of its duty to indemnify when its insured settles a lawsuit over the carrier’s objection. We hold that under the circumstances of this case, the insurer is relieved.

I. FACTS

The plaintiffs (“Do-It Fluid”), two related corporations and their employees, operated a dive shop on St. Croix. The defendant (“Lloyds”) provided Do-It Fluid with a $1 million liability insurance policy subject to the following exclusion:

This Certificate does not insure any liability for Bodily Injury or Property…