Markel American Insurance v. G.L. Anderson Insurance Services, Inc.

MEMORANDUM AND ORDER

This matter is before the court on defendants G.L. Anderson Insurance Services, Inc. (“GLAIS”) and Gary L. Anderson’s (“Anderson”) (collectively, “defendants”) motion for summary judgment and plaintiff Markel American Insurance Company’s (“Markel”) cross-motion for summary judgment pursuant to Rule 56 of the Federal Rules of Civil Procedure. For the reasons' set forth below, defendants’ motion for summary judgment is DENIED, and plaintiffs motion for summary judgment is GRANTED in part and DENIED in part.

BACKGROUND

This case arises out of an insurance coverage dispute between plaintiff and de fendants. Markel issued an Employment Practices Liability Insurance Policy (the “Policy”) to GLAIS, effective December 30, 2007 to December 30, 2008, with limits of liability of $500,000 for each claim and $1,000,000 in the aggregate. (PUF ¶ 1.) The Policy provides, in pertinent part, that Markel “will pay on behalf of the Insured all Damages which the Insured shall become legally obligated to pay as a result of Claims ... by reason of any Wrongful Employment Practice.” (PUF ¶ 3.) However, pursuant to Exclusion 1, the Policy does not apply to any claim against the…