National Athletic Sportswear, Inc. v. West Field Insurance Co.

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ARGUED MAY 30, 2008

Before BAUER, RIPPLE and WOOD, Circuit Judges.

In October of 2006, National Athletic Sportswear Company (“NAS”) filed a complaint against Westfield Insurance Company in Indiana state court, alleging that Westfield breached an insurance contract by refusing to pay NAS’s losses resulting from a burglary of its premises. Additionally, NAS complained that Westfield’s efforts to settle the claim were in bad faith. Westfield removed the case to federal court, and filed an answer, as well as a counterclaim seeking a declaratory judgment that NAS failed to comply with the terms of the Examination Under Oath (“EUO”) provision in the policy, because NAS refused to submit to Westfield’s request for a second EUO. Subsequently, Westfield moved for summary judgment. The district court granted the motion, concluding that it was not unreasonable for Westfield to require a second EUO, therefore NAS breached the contract by failing to comply with the terms and conditions of the policy, and that Westfield did not breach its good faith duty.

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