Interstate Fire & Casualty Co. v. Archdiocese of Portland

Interstate Fire & Casualty Company (“Interstate”) appeals the district court’s grant of summary judgment in favor of the Archdiocese of Portland in Oregon and Underwriters at Lloyd’s of London, et al. (“Lloyd’s”) in an insurance coverage dispute. In 1985, the Archdiocese was sued by a boy who claimed that he had been sexually molested over a period of years by a priest employed by the Archdiocese. The parties to the underlying molestation action eventually settled the claim with contributions from the Archdiocese, its primary insurer, Lloyd’s, and its excess insurer, Interstate. Interstate subsequently brought this diversity action in federal district court, claiming that, under the terms of the applicable policies, the entire loss should be carried by the Archdiocese and Lloyd’s, and that it should be reimbursed for the funds that it had contributed to the settlement. The parties each submitted motions for summary judgment, and the district court ruled in favor of the Archdiocese and Lloyd’s. We have jurisdiction pursuant to 28 *1327 We reverse the grant of U.S.C. § 1291. summary judgment and remand.

I. FACTUAL AND PROCEDURAL BACKGROUND

Father Laughlin, a priest employed by the…