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Nationwide not obliged to cover employment prejudices



A nationwide mutual insurance entity is not required to provide discrimination coverage to a maintenance company under an exemption from its coverage, a federal appellate court said Tuesday as they upheld a lower court decision.

Overland Park, Missouri-based Columbia Maintenance Co. , who had been sued for alleged discrimination against employees, sought coverage from his insurer, Nationwide unit AMCO Insurance Co., according to the judgment of the 8th U.S. Circuit Court of Appeals in St. Louis. Louis and AMCO Insurance Co .; Depositors Insurance Co. v. Columbia Maintenance Co .; MK Maintenance, LLC et al.

Nationwide lawsuit at U.S. District Court and St. Louis and requested a declaration that it was not obligated to defend or indemnify Columbia in the litigation. The district court ruled in favor of the insurer and was upheld by a unanimous three judges of the Court of Appeal. 1

9659002] "Despite this simple interpretation, Columbia believes the policy is ambiguous and should be construed in its favor," the short sentence said. "The problem is that the two provisions are not 'inconsistent', much less 'incompatible,'" it says. It simply provides coverage for discrimination claims in one provision, and then excludes a subset of them in another, which is exactly how exceptions work, "said the verdict, which upheld the lower court's ruling.

Lawyers in the case did not respond to requests

In December, a federal appellate court upheld a lower court decision, holding that AMCO was not required to defend a former restaurant owner in litigation filed by former employees during an employment-related exclusion from his custody.


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