Federal Judge: Employee’s Promissory Fraud Claim Triggers Insurer’s Duty To Defend

Mealey's (October 5, 2018, 2:16 PM EDT) -- BIRMINGHAM, Ala. — After ordering an insured and its insurer to provide additional briefing on whether an employment practices liability insurance policy provides coverage for punitive damages, an Alabama federal judge on Sept. 21 found that a former employee’s underlying promissory fraud claim against the insured is sufficient to trigger the insurer’s duty to defend (American Chemicals & Equipment, Inc. d/b/a American Osment v. Continental Casualty Co., et al., No. 15-00299, N.D. Ala., 2018 U.S. Dist. LEXIS 161426)....