SHH HOLDINGS, LLC v. ALLIED WORLD SPECIALTY INSURANCE COMPANY - Articles

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SHH HOLDINGS, LLC v. ALLIED WORLD SPECIALTY INSURANCE COMPANY

Posted by: Karen Belcher on Apr 21, 2023

Court: 6th Circuit Court (Published Opinions)

Attorneys 1: ARGUED: Charles W. Chotvacs, DYKEMA GOSSETT, PLLC, Washington, D.C., for Appellant.

Attorneys 2: ARGUED: Michael P. O’Donnell, BROUSE MCDOWELL, LPA, Cleveland, Ohio, for Appellee.

Attorneys 3: ON BRIEF: Charles W. Chotvacs, DYKEMA GOSSETT, PLLC, Washington, D.C., Monica A. Sansalone, GALLAGHER SHARP, LLP, Cleveland, Ohio, for Appellant.

Attorneys 4: ON BRIEF: Michael P. O’Donnell, David Sporar, BROUSE MCDOWELL, LPA, Cleveland, Ohio, for Appellee.

Judge(s): GIBBONS, BUSH, and MATHIS, Circuit Judges

Court Appealed: United States District Court for the Northern District of Ohio at Cleveland.

JULIA SMITH GIBBONS, Circuit Judge. Plaintiff-appellee SHH Holdings, LLC, sued defendant-appellant Allied World Specialty Insurance Company (“Allied World”) after Allied World declined insurance coverage for SHH’s settlement of certain employees’ retaliation claims under the False Claims Act. SHH sued for breach of contract and breach of the duty of good faith and fair dealing, seeking a declaratory judgment and money damages. The district court granted summary judgment to SHH on its breach of contract and declaratory judgment claims and to Allied World on the bad faith claim. The district court also granted attorney fees to SHH, finding that Ohio law permits fees when an insured party is forced to litigate to obtain coverage. Allied World appeals both the grant of summary judgment and the award of attorney fees. Because the plain language of SHH’s policy excluded coverage for the retaliation claims, we reverse.

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