Narrative Opinion Summary
In this case, the City of Margate sought indemnification from Great Southwest Fire Insurance Company and National Casualty Insurance Company for legal fees owed to a former city commissioner, Jack Tobin, following his successful defense against criminal charges of accepting unlawful compensation. The trial court had previously ruled that Tobin was entitled to have his legal fees paid by the City, a point not contested on appeal. Both the City and Tobin were covered under public official liability policies designed to protect against claims arising from wrongful acts conducted in official duties. However, the trial court, referencing the precedent of County of Accomack v. Forum Insurance Co., determined that such policies only cover civil claims and not criminal ones. Consequently, the court ruled that the insurance providers were not liable for the legal fees associated with Tobin's criminal defense. The appellate court affirmed this decision, agreeing that the liability policies did not extend to criminal indictments, and thus, the City’s third-party claim for indemnification was dismissed. Judges Downey and Anstead concurred with the decision.
Legal Issues Addressed
Coverage Limitations under Public Official Liability Policiessubscribe to see similar legal issues
Application: The court applied the precedent to conclude that the insurance policies did not provide coverage for claims arising from criminal actions, such as the charges against the city commissioner.
Reasoning: The court concludes that claims for attorney’s fees resulting from criminal actions are not encompassed by the liability insurance policies.
Indemnification for Legal Fees under Liability Insurancesubscribe to see similar legal issues
Application: The court determined that the liability insurance policies held by the City of Margate and the former commissioner do not cover attorney's fees incurred from defending against criminal charges.
Reasoning: The trial court denied coverage for Tobin’s legal fees based on the precedent set in County of Accomack v. Forum Insurance Co., which determined that similar policy provisions only cover civil claims and do not extend to criminal indictments.