Nationwide Must Be On Side Of Pa. Whistleblower, Court Says

Law360 (July 11, 2019, 7:40 PM EDT) -- A Pennsylvania appellate court on Thursday affirmed that Nationwide must defend a Pennsylvania Department of Transportation whistleblower in a lawsuit alleging that he falsely accused a contractor of overcharging the agency.

In a unanimous opinion, a panel of the Pennsylvania Superior Court agreed with a trial court that Nationwide Mutual Insurance Co. cannot deny coverage for the underlying suit against its insured, PennDOT engineer August Arnold, by invoking a "business pursuits" exclusion in his personal umbrella policy for liabilities arising from his work.

Arnold acted as a whistleblower in a U.S. government action against several agency contractors. One of those companies,...

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