Insurer's Bid To Avoid Kids-For-Cash Coverage Revived

Law360, New York (April 1, 2011, 4:00 PM EDT) -- A Pennsylvania federal judge on Thursday gave new life to an insurer's bid to avoid covering a youth detention center in a kickback suit involving judges, saying the underlying action stemmed from an alleged crime.

Judge A. Richard Caputo of the U.S. District Court for the Middle District of Pennsylvania revived Alea London's claim, saying the insurer has no duty to defend PA Child Care, its owner and an ex-owner against the so-called cash-for-kids kickback claims. The judge's finding on the duty to defend was not...
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