Legacy Partners, Inc. v. Travelers Indemnity Co.

ORDER

The Memorandum disposition filed October 23, 2003, 79 FedAppx. 295, is withdrawn and is replaced by the Amended Memorandum filed concurrently with this Order. The petition for rehearing of Legacy Partners, Inc., and C. Preston Butcher is granted to the extent reflected in the Amended Memorandum. The petitions for panel rehearing are otherwise DENIED.

AMENDED 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.…