$1M Diamond Fraud Defense Not Covered, 6th Circ. Rules

Law360, New York (January 22, 2014, 1:50 PM EST) -- The Sixth Circuit spared Jewelers Mutual Insurance Co. on Tuesday from paying for an Ohio jeweler's defense against fraud counterclaims in litigation over a missing diamond, ruling that the diamantaire accused of losing the stone had alleged no coverage-triggering personal injury.

A unanimous panel affirmed that John Stafford and his jewelry business were not entitled to defense costs once the target of his lawsuit, Julius Klein Diamonds, lodged counterclaims alleging that Stafford had lied when accused JKD of losing or stealing a 5.56-carat pink diamond once...
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