Federal Insurance Company v. Sandusky
United States District Court for the Middle District of Pennsylvania
2013 WL 785269 (2013)
- Written by Liz Nakamura, JD
Facts
Gerald Sandusky (defendant) was a founder and officer of The Second Mile, a nonprofit organization that helped support underprivileged children in Pennsylvania. The Second Mile had an insurance policy through Federal Insurance Company (Federal) (plaintiff) that provided legal defense fee coverage for any criminal or civil claims filed against The Second Mile’s employees, officers, or volunteers. Coverage was limited to claims arising from conduct undertaken in the individual’s capacity as an employee, officer, or volunteer for The Second Mile. Sandusky was charged in both criminal and civil court on multiple counts of sexual misconduct with minors, many of whom Sandusky met through events run by The Second Mile. Federal moved for summary judgment, arguing that it did not need to cover Sandusky’s legal defense costs because he did not sexually abuse minors in his insured capacity as an officer of The Second Mile.
Rule of Law
Issue
Holding and Reasoning (Kane, C.J.)
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