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A Washington state appeals court ruled Monday that the Bremerton School District’s insurer, Schools Insurance Association of Washington (SIAW), is not responsible for covering a nearly $1.8 million legal fee settlement paid to former high school football coach Joseph Kennedy, who was suspended for praying on the 50-yard line after games. The court determined that the settlement was excluded under the district’s insurance policy due to provisions regarding fees from adverse judgments.

$1.8M Praying Coach Settlement : Court’s Ruling on Exclusion Clause

A three-judge panel affirmed the trial court’s decision, holding that the exclusion in the insurance policy clearly applied. The exclusion precluded coverage for "any fees, costs, or expenses" that result from a declaratory or injunctive relief ruling. Since Kennedy prevailed in such an action and was awarded legal fees, the panel ruled that SIAW was not obligated to cover those costs.

"The exclusion plainly excludes from coverage 'any fees' resulting from an adverse action for declaratory or injunctive relief," the court stated. The judges noted that Kennedy’s legal fees were awarded as a result of his successful claims for injunctive and declaratory relief.

$1.8M Praying Coach Settlement : Background of the Case

Kennedy, a former football coach at Bremerton High School, sued the district in August 2016, alleging that it violated his First Amendment rights by suspending him for praying on the field. The district had declined to renew his contract, citing concerns about violating the Establishment Clause of the Constitution, which prohibits government endorsement of religion.

While Kennedy’s lawsuit was initially dismissed by lower courts, including the Ninth Circuit Court of Appeals, the U.S. Supreme Court reversed those decisions in 2022, ruling in favor of Kennedy. The high court found that the district infringed upon his rights to free speech and free exercise of religion, ordering his reinstatement and prohibiting the district from interfering with his post-game prayers.

$1.8M Praying Coach Settlement : Legal Fees and Settlement

After the Supreme Court's ruling, the district was ordered to reinstate Kennedy and awarded him over $5,000 in costs associated with his appeal. The two parties later negotiated a settlement for $1.7 million to cover attorney fees and costs. SIAW agreed to contribute $300,000 toward the settlement but disputed its responsibility for the rest.

SIAW had initially defended the district under a reservation of rights but later denied coverage for the settlement, citing the adverse judgment exclusion. The Bremerton School District subsequently sued SIAW in March 2023, accusing the insurer of breaching its contractual obligations. However, the trial court sided with SIAW, a decision the appeals court has now upheld.

District’s Argument Rejected

On appeal, the school district argued that the legal fees were not the direct result of Kennedy’s declaratory or injunctive relief but should instead be considered separate from the exclusion. The panel rejected this argument, stating that the fees and costs were clearly related to the relief Kennedy obtained, and interpreting the exclusion otherwise would result in a "strained and forced construction."

Legal Representation and Reaction

Susannah C. Carr, attorney for the Bremerton School District, expressed disappointment with the court's ruling, stating that the district believes the exclusion should have been interpreted more narrowly. Representatives for SIAW did not immediately respond to requests for comment.