Am. Alternative Ins. Corp. v. Metro Paramedic Servs., Inc.

Three female employees of Metro Paramedic Services sued Metro and Antioch Rescue Squad, alleging an unrelenting practice of egregious sexual harassment, assault and battery, retaliation for whistleblowing, and failure to supervise. They alleged that Antioch and Metro were a partnership or joint venture, jointly staffed and operated. Metro used Antioch ambulances, and employees of both entities used Antioch uniforms and gear. Two of the employees resolved their claims, based on an offer of judgment from Metro and Antioch; the third reached a settlement with both. AAIC, Antioch’s liability insurer, covered Antioch’s defense costs and indemnified its offers of judgment and settlement, but insisted that it had no obligation to cover Metro under Antioch’s policy and sought a declaratory judgment. The district court found, and the Seventh Circuit affirmed, that AAIC owed Metro a duty to defend. The policy stated, “If you are ... a partnership or joint venture, you are an insured. Your members and your partners are also insureds but only within the course and scope of your operations.” The arrangement qualified as a joint venture. View "Am. Alternative Ins. Corp. v. Metro Paramedic Servs., Inc." on Justia Law