Gerald Faust, an Individual Faust Management Corporation, a Corporation v. The Travelers, a Corporation the Travelers Indemnity Company of Illinois
Opinion
Opinion
King, J.
Gerald Faust and Faust Management Corporation (collectively “Faust”) appeal the district court’s summary judgment in favor .of Faust’s liability insurer, The Travelers (“Travelers”), in Faust’s action seeking reimbursement of certain attorneys’ fees, and other defense costs incurred during Faust’s defense of a lawsuit. Faust contends the district court erred by: (1) finding Travelers had no obligation to reimburse Faust for defense costs incurred by Faust before it tendered its defense to the insurer; (2) concluding that no genuine dispute of material fact existed as to the voluntariness of Faust’s pre-tender payments; and (3) finding that Travelers had no obligation to defend three shareholders not named as insureds under its policy. We have jurisdiction pursuant to 28 U.S.C. § 1291 and affirm.
I.
Faust Management Group (“FMG”) was the named insured under a general liability insurance policy purchased from Travelers. Among the policy’s terms was a clause that read, in pertinent part: “[n]o insureds will, except at their own cost, voluntarily make a payment, assume any obligation, or incur any expense, other than for first aid, without our consent.”