Post Date July, 25 2012 – Federal appeals court in Philadelphia, Pennsylvaniahad recently ruled that a popular car insurance company does not have to pay the
damages as part of a settlement over a scandal involving privately owned juvenile detention centers. The Third Circuit Court of Appeals panel agreed the popular car insurance company, Travelers Property Casualty Co., is not bound to pay part of the damages that amounts to $1.75 million under its policy for a Philadelphia area developer. The court said the popular car insurance company should not be forced to pay because according to the plaintiffs, the developer knowingly committed the acts that led him to the lawsuit. This would mean the nearly 2 million dollars in damages would need to be defrayed completely by the defendant in the case.
Car Insurance Company Won’t Have to Pay
In a civil-rights actions filed against the developer by the former juveniles who claimed that they were victims of the kids-for-cash scandals. Accordingly, the developer paid $2.1 million to two former Pennsylvania judges who placed the juveniles in the for-profit detention centers built by one of the developers companies. The judges whom were involved in the scandal both landed in jail. The developer built the two juvenile detention centers that were associated with the kickback and payoffs to the Judges. The developer pleaded guilty to federal charges. Since the popular car insurance company, Travelers, insured the developer – their liability insurance policies were in danger. Since the acts of the insured were illegal and voluntary; Travelers Insurance Company is not legally liable to pay any claims under the policy form. Although they sell many different types of insurance; the public recognizes Travelers Insurance as a car insurance company.
Michael E. Dortch
President & Managing Agent
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania 19446