Sovereign General Insurance Services, Inc. v. National Casualty Co.

MEMORANDUM **

Appellant Sovereign General Insurance Services, Inc. (“Sovereign”), a licensed surplus fine broker, appeals the district court’s summary judgment in favor of Ap-pellee National Casualty Company (“National”). Sovereign filed a diversity action against National alleging that National had breached its contractual obligation under an errors and omissions insurance policy and acted in bad faith by failing to appoint Cumis counsel to represent Sovereign in an arbitration proceeding in London, England, that was instituted against Sovereign by Certain Underwriters at Lloyd’s of London (“Lloyd’s”). National agreed to defend Sovereign in the Lloyd’s arbitration under a reservation of rights to deny coverage based on an exclusion in the insurance policy barring coverage where Sovereign acted in the capacity of a Managing General Agent. National retained Charles Russell, LLP (“the Charles Russell firm”) to represent Sovereign in the Lloyd’s arbitration. The district court granted sum *707 mary judgment in favor of National, concluding that National had no obligation to appoint Cumis counsel for Sovereign in the Lloyd’s arbitration and that National had not acted in bad…