Court: Pennsylvania City, Not Insurer, Must Pay Settlement

May 13, 2010

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A federal appeals court says an eastern Pennsylvania city and not its insurance company must pay a multimillion-dollar settlement with the widow of a police officer accidentally shot by another officer inside police headquarters.

The 3rd U.S. Circuit Court of Appeals on Tuesday reversed a federal court’s decision that Scottsdale Insurance Co. should pay claims against the city of Easton in the death of officer Jesse Sollman after a March 2005 training exercise.

The appeals court cited an “employee injury exception” in the insurance policy in saying Scottsdale does not have to pay the $5 million settlement with Sollman’s widow, Carin. The court said more litigation will be needed to determine whether the company has to pay up to $50,000 under the policy’s “line of duty death” coverage.

Easton earlier this year borrowed about $3 million from itself to make a scheduled payment.

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Latest Comments

  • May 14, 2010 at 12:17 pm
    blue moon says:
    I'm guessing the 50K for "line of duty" is the exception to the employee injury wording.
  • May 13, 2010 at 1:38 am
    wudchuck says:
    "employee injury exception"... i think this would also make the exclusion for line of duty, since it was also in the office space and not actually on patrol... he was not in a... read more
  • May 13, 2010 at 1:22 am
    Sue Smith says:
    Nice to see some courts are upholding contract law.
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