St. Paul Mercury Insurance v. Medical Laboratory Network, Inc.

MEMORANDUM OF DECISION AND ORDER

BACKGROUND

This is an action for declaratory relief filed by St. Paul Insurance Co. and St. Paul Fire and Marine Insurance Co. (“St. Paul”). St. Paul seeks a determination that it has no duty to defend or indemnify its insureds, Medical Laboratory Network, Inc. (“Network”) and its general manager, David Willis, against an underlying wrongful employment termination action filed by Corazón Sarmiento in state court.

The state court action filed by Sarmiento alleged causes of action for: (1) wrongful termination; (2) breach of the covenant of good faith and fair dealing; (3) intentional infliction of emotional distress; (4) negligent infliction of emotional distress; and (5) violation of state discrimination statutes. The record indicates, however, that Sarmiento was not actually fired, but resigned her position.

The insurance policy in question imposes a duty upon St. Paul to defend or indemnify Network for injuries to Sarmiento which result from “accidental” events.

DISCUSSION

Before the Court is a motion for summary judgment brought by St. Paul. Summary judgment is appropriate where, as here, the pleadings, briefs and documentary evidence…