11th Circ. Says Dueling Cases Void Insurance Exclusion

By Emily Field (December 17, 2014, 7:56 PM EST) -- The Eleventh Circuit on Wednesday overturned a lower court's decision that St. Paul Mercury Insurance Co. didn't owe coverage for an underlying $15 million suit brought by the Federal Deposit Insurance Corp., ruling that an insured v. insured exclusion was ambiguous because courts' interpretation of similar language has been varied.

The panel said in a published opinion that, under Georgia law, the exclusion was ambiguous because other courts have reached different results when they've ruled on similarly worded policies. The Eleventh Circuit said that extrinsic evidence may be necessary to determine the parties' intent and remanded the case back to the...

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