Paul S. Taylor, D/B/A Taylor Towing Service v. Commercial Union Insurance Company, a Corporation

McMILLIAN, Circuit Judge.

Appellant, an insurance company, appeals from a judgment by the District Court for the Eastern District of Missouri holding appellant liable to indemnify appellee under an insurance policy for certain losses, and holding appellant liable for a statutory penalty and attorney’s fees based on vexatious refusal to pay appellee’s claim. For the reasons stated below, we affirm the judgment of liability under the insurance policy, but reverse as to liability for vexatious refusal to pay the claim.

The insurance claim at issue in this case arose out of damage to the dock of…