3rd Circ. Upholds Insurer Win In 'Kids For Cash' Scandal

Law360, New York (June 20, 2012, 7:56 PM EDT) -- The Third Circuit on Wednesday upheld a Pennsylvania court's decision that Travelers Property Casualty Co. does not have to defend a construction company sued for its role in a scheme that paid two judges to steer juvenile offenders to a private detention center.

The three-judge panel said the district court was right to conclude that Robert Mericle and his company, Mericle Construction Inc., violated clauses in their primary and commercial excess policies that said the insurer did not have to pay defense costs if policyholders willfully...
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