Vergene A. Boulet v. Millers Mutual Insurance Association of Illinois, an Illinois Corporation

GIBSON, Circuit Judge.

This is an appeal from the United States District Court for the District of Minnesota, in a diversity case, granting judgment for defendant, Millers Mutual Insurance Company of Illinois (Millers) on automobile liability policy. Minnesota law applies. Only two issues are presented on this appeal. They are:

I. Under Minnesota law, if an insurer, with full knowledge of the facts, voluntarily assumes the defense of an action, but due to a policy exclusion withdraws from the case prior to trial, is the insurer estopped from denying liability under the exclusion on the basis…