Missouri Court of Appeals, Western District / Apr 6, 2021
Sprint Lumber, Inc., Scott Laderoute, Jerry Downey, Sheila Higdon, Jess Reynolds, and Ray Meng vs. Union Insurance Company, Continental Western Group, LLC
Sprint Lumber, Inc., and its employees (Sprint Lumber Parties) sued Union Insurance Company (Union) for declaratory judgment, breach of contract, and breach of fiduciary duty after Union denied coverage and a defense in a federal lawsuit brought by a competitor. The trial court found Union had a duty to defend and indemnify, but granted summary judgment to Union on the breach of fiduciary duty claim and limited the calculation of statutory penalties and attorney fees. The appellate court affirmed Union's duty to defend and indemnify, reversed the summary judgment on the breach of fiduciary duty claim, and reversed the calculation of attorney fees for breach of the duty to defend, remanding for further proceedings and recalculation.