Weinstein & Riley Ps v. Westport Insurance Corporation

MEMORANDUM

The parties cross-appeal the judgment of the district court after a three-day bench trial in this insurance coverage dispute. We have jurisdiction under 28 U.S.C. § 1291 and we affirm.

1. Application of an incorrect legal standard. Plaintiffs William Weinstein and Weinstein & Riley claim that the district court failed to apply the correct legal standard from Continental Casualty Co. v. Board of Education, 302 Md. 516 , 489 A.2d 536, 544-45 (1985). The district court, however, correctly quoted the exact language of Continental Casualty when it announced the legal standard it was using. Findings of Fact and Conclusions of Law at 42, ¶ 33. Plaintiffs’ contention that this language was dicta is unpersuasive. There was no error here.

2. Duty to defend. The district court found that Defendant Westport Insurance Corporation did not breach its duty to defend. With respect to the Washington litigation, Defendant accepted its duty to defend Plaintiffs against the “failure to withdraw” claim under a reservation-of-rights letter, but Plaintiffs rejected Defendant’s choice of counsel. Findings of Fact and Conclusions of Law at 12-14. With respect to the Oregon litigation, no…