Federal Rice Drug Company, a Corporation, in No. 19,540 v. Queen Insurance Company of America, a Corporation, in No. 19,541

OPINION OF THE COURT

GIBBONS, Circuit Judge.

The appellant, Federal Rice Drug Company (the insured) in this diversity action brought suit against Queen Insurance Company of America, appellee and cross appellant (the insurer) for wrongful denial of coverage under a Comprehensive Business Policy. In a non-jury trial the district court held that the insured was not entitled to indemnity under the policy with respect to the claim in issue, but that the insurer should have undertaken defense of the claim. It entered judgment in favor of the insured for the amount of the counsel fees incurred by the…