United States First Circuit

In plaintiff-school administrative union's suit against its insurer, claiming that it had a duty to indemnify plaintiff for the costs incurred in defending a claim for reimbursement of non-tuition expenses under the Individuals with Disabilities Education Act (IDEA), and that insurer unreasonably failed to timely settle plaintiff's claim for coverage in violation of Maine's Unfair Claims Settlement Practices Act (UCSPA), district court's judgment is reversed in part, affirmed in part and remanded where: 1) dismissal of plaintiff's claim for coverage under the Policy is reversed as, in light of the fact that the Policy lacks a definition of the term "money damages" and given that in at least one of its relevant provisions the Policy construes "damages" in the context of one form of equitable monetary relief, it is unlikely that an ordinary insured would interpret damages as excluding monetary compensation in the form of reimbursement; 2) because defendant failed to object to the magistrate's recommendation regarding the existence of a wrongful act, this argument is deemed forfeited; and 3) dismissal of plaintiff's claim for relief under UCSPA is affirmed as plaintiff has failed to show that defendant lacked any legitimate or reasonable basis to deny coverage.

Appellate Information

• Decided 08/19/2010
• Published 08/19/2010

Judges

• TORRUELLA

Court

• United States First Circuit

Counsel

• For Appellant:
  
• Brendan P. Reilly, John S. Whitman