Continental Casualty Co. v. Board of Education of Charles County

489 A.2d 536 (1985)

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Continental Casualty Co. v. Board of Education of Charles County

Maryland Court of Appeals
489 A.2d 536 (1985)

RW

Facts

Iorio Construction Company, Inc. (Iorio) sued the Board of Education of Charles County, Maryland (board) (plaintiff) in federal court, alleging that the board breached Iorio’s construction contract and tortiously conspired to commit that breach. Continental Casualty Company (Continental) (defendant) insured the board under a claims-made, directors-and-officers policy. The policy covered tort claims but specifically excluded coverage for breach-of-contract claims. The board settled the Iorio case out of court. Continental played no role in the settlement and refused to reimburse the board’s litigation expenses, including the board’s attorney’s fees. The board sued for a declaratory judgment that Continental owed reimbursement. The federal court submitted certified questions asking the Maryland Court of Appeals how Maryland law bore on the board’s case.

Rule of Law

Issue

Holding and Reasoning (Rodowsky, J.)

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