Legacy Partners, Inc. v. Travelers Indemnity Co.

MEMORANDUM **

Defendant Travelers Indemnity Company of Illinois (“Travelers”) appeals from the judgment following a bench trial in an insurance coverage dispute between it and plaintiffs C. Preston Butcher (“Butcher”) and Legacy Partners, Inc (“LPI”). Butcher and the plaintiff in the underlying action, Mack Pogue, were in the process of dividing their real-estate holdings when Pogue brought suit against Butcher for making defamatory statements against him and his company, Lincoln Property Company (“Lincoln”). Butcher tendered the defense of the underlying action to Travelers. Travelers refused to defend on the ground that, while LPI was a Named Insured under the policy, LPI was not a named defendant in the complaint. Travelers appeals the district court’s ruling on summary judgment that it breached the duty to defend. Travelers also appeals the district court’s calculation of attorney fees following the bench trial. Butcher cross-appeals the court’s denial of indemnification for the voluntary settlement reached between him and Pogue, and the district court’s refusal to grant pre-tender attorney fees. We have jurisdiction pursuant to 28 U.S.C. § 1291 , and we affirm on all…