Federal Judge Suggest No Insurance Duty in 'Kids-for-Cash' Civil Cases

The federal judge who is overseeing the civil rights suits filed in the wake of the "kids-for-cash” judicial corruption scandal in Luzerne County has handed down a pair of opinions in favor of insurers who are refusing to provide any coverage for the cases.

The rulings by U.S. District Judge A. Richard Caputo stopped short of declaring that the insurers have no duty to provide coverage, but included strong hints that such a judgment would follow.

Instead, in both opinions - Markel International Insurance Co. v. Western PA Child Care and Alea London v. PA Child Care - Caputo was ruling on motions to dismiss the suits filed by the insureds, and the judge’s rejection of those motions means only that the suits may now proceed.

But the conclusory language used by the judge in explaining why policy exclusions would apply to bar any coverage seems to suggest that a final judgment in the insurers’ favor is now a mere formality.

Lawyers for the insurers in both cases said the defendants will be required to file formal answers to the suits and that the insurers will soon after file motions for summary judgment.

Such motions appear nearly certain to be granted, based on language in Caputo’s recent opinions.

Source:
Judge Suggests No Insurance Duty in 'Kids-for-Cash' Civil Cases