Casualty Indemnity Exchange v. City of Sparta

JOHN C. CROW, Presiding Judge.

Casualty Indemnity Exchange (“CIE”) appeals from a judgment declaring an insurance policy issued by it: (a) provides coverage to the City of Sparta (“Sparta”) for claims against Sparta in a lawsuit by Edwin Roller and Paula Roller (“Rollers”), and (b) requires CIE to defend Sparta and indemnify it for any judgment against it in favor of Rollers, subject to the policy limits. CIE maintains there are two exclusions in the policy, each of which bars coverage.

This opinion henceforth refers to Rollers’ lawsuit as “the underlying suit.” Sparta is one of three…