American Motorists Insurance v. Allied-Sysco Food Services, Inc.

Allied-Sysco Food Services, Inc. (Allied-Sysco) appeals from a judgment awarding American Motorists Insurance Company (AMICO) $55,376.27 in a declaratory relief action in which the court found coverage under Allied Sysco’s excess policy for humiliation damages resulting from sexually discriminatory hiring practices. Allied-Sysco asserts that the trial court erred in not also finding coverage under the discrimination portion of the policy, and that it miscalculated the damage award to AlliedSysco, particularly the allocation of settlement and deferred costs and the application of the retention amounts (deductibles). AMIGO cross-appeals, arguing the court erred in finding coverage for humiliation damages. We conclude as a matter of law that the excess policy did not provide coverage under either provision raised herein, and that the court erred in awarding AMIGO reimbursement for a portion of attorney fees it paid to Allied-Sysco.

Facts and Procedural Summary

Allied-Sysco operates a food distribution business. In December 1987, Debbie Ferrill, an applicant, and Catherine Goulart, a prospective applicant for employment, filed a class action suit (the Goulart suit) against…