In 2022, the district court granted summary judgment in favor of Argo, ruling that the insurance policies Koppers obtained from a Hawaiian broker were limited to the company’s properties in Hawaii. The court found that the coverage did not extend nationwide.
Koppers appealed the decision, contending that the policies’ territorial scope included the entire U.S. and its territories, not just Hawaii. The Fourth Circuit agreed, reversing the lower court’s ruling and holding that the insurer owed coverage to Koppers under the broader territorial definition.
Argo’s Arguments for Supreme Court Review
In its petition to the Supreme Court filed on September 25, Argo argued that the Fourth Circuit had “deviated from established insurance law in Hawaii.” The insurer claimed that the appellate court misinterpreted the policy terms and disregarded Hawaii’s complaint allegation rule, which stipulates that insurers are only required to defend claims explicitly covered by the policy.
Argo asserted that the Fourth Circuit overstepped by imposing a duty to defend, even though Koppers’ pleadings fell short of clearly demonstrating coverage. “The Fourth Circuit disregarded the complaint allegation rule, disregarded controlling language in the policy, minted a novel standard of Hawaii law, and imposed a duty to defend where no such duty previously existed,” Argo wrote in its petition. The insurer further argued that the Fourth Circuit’s decision conflicts with rulings by the Hawaii Supreme Court, the Ninth Circuit, and district courts in Hawaii.
Coverage Row Over Wood Treatment : Implications of the Court’s Decision
The Supreme Court’s refusal to take up the case leaves the Fourth Circuit’s interpretation of the insurance coverage intact, meaning Argo is responsible for covering Koppers’ defense costs. The ruling underscores the principle that any ambiguity in an insurer’s duty to defend under Hawaii law should be resolved in favor of the insured, as the Fourth Circuit panel emphasized.
Coverage Row Over Wood Treatment : Legal Representation
Koppers is represented by Laura F. Locklair of Boyle Leonard & Anderson PA. Representatives for Argo Group did not immediately respond to requests for comment on the Supreme Court’s decision.
