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.
