In re Tower Automotive, Inc.
Federal Insurance Company objected to a Bankruptcy Court order that recommended granting summary judgment to Tower Automotive, Inc. on Federal's obligation to pay defense costs for ERISA actions. Tower commenced the action seeking a declaration of insurance coverage for lawsuits related to its employee benefit plans. Federal denied coverage, citing an exclusion in its Fiduciary Liability Policy after Securities Actions were filed. The District Court, applying Michigan law, found both parties' interpretations of the exclusion reasonable but, due to ambiguity, construed the clause against Federal. Consequently, the District Court overruled Federal's objections and granted summary judgment in favor of Tower, affirming Federal's duty to defend.