Facts

First One Lending Corp. and others sued The Hartford Casualty Insurance Co., concerning coverage in an underlying lawsuit filed against First One.

The underlying lawsuit was settled around May 2013. First One was required to pay $1.5 million in settlement and comply with a permanent injunction.

PLAINTIFFS' CONTENTIONS:
Plaintiffs claimed that defendant was required to cover First One's and its CEO's legal expenses pursuant to an insurance policy issued by defendant in connection with an underlying lawsuit filed by the Neighborhood Assistance Corp. of America. Plaintiff asserted claims for declaratory relief, breach of contract against defendant.

DEFENDANTS' CONTENTIONS:
Defendant denied it had any duty to defend plaintiffs in the underlying case. Defendant argued that the underlying lawsuit was not covered under the policy because the underlying lawsuit sought noncovered injunctive relief and uninsurable disgorgement of illicit gains. As such, it moved for summary judgment.

Result

The trial court agreed with Hartford that the underlying lawsuit concerned uncovered or uninsurable damages, and granted Hartford's motion for summary judgment.

Other Information

FILING DATE: Sept. 25, 2013.