Insurer Has No Duty To Remit $398,243.77 In Garnished Funds, Panel Say, Reverses
(August 16, 2016, 7:09 AM EDT) -- DENVER — A Colorado appeals panel on July 28 reversed a lower court’s judgment ordering an insurer to remit garnished funds to satisfy an underlying $398,243.77 judgment against its insured, finding that professional liability coverage is barred because a negligence claim against the insured is not independent of the misappropriation of escrow funds by the insured’s employee (Stewart Title Guaranty v. RSUI Group, No. 15CA0635, Colo. App.).
(Opinion available. Document #13-160818-008Z.)
Stewart Title Guaranty Co. alleged that Moritz Title Company of Denver LLC contracted with Alanea...