The U.S. Court of Appeals for the Third Circuit ruled that Travelers Property Casualty Co. of America is not obligated to defend or indemnify Robert Mericle in suits stemming from the “kids-for-cash” scandal in Luzerne County. Mericle’s construction company built juvenile facilities that housed youths sent there by two former Luzerne County judges who were getting kickbacks for filling the detention centers.
Because Mericle’s actions are alleged to be intentional, rather than accidental, his insurance company is not obligated to defend him against civil suits filed by the juveniles, a three-judge panel ruled, affirming the U.S. District Court for the Middle District of Pennsylvania’s holding.
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