Court: Pennsylvania City, Not Insurer, Must Pay Settlement

A federal appeals court says an eastern Pennsylvania city and not its insurance company must pay a multimillion-dollar settlement with the widow of a police officer accidentally shot by another officer inside police headquarters.

The 3rd U.S. Circuit Court of Appeals on Tuesday reversed a federal court’s decision that Scottsdale Insurance Co. should pay claims against the city of Easton in the death of officer Jesse Sollman after a March 2005 training exercise.

The appeals court cited an “employee injury exception” in the insurance policy in saying Scottsdale does not have to pay the $5 million settlement with Sollman’s widow, Carin. The court said more litigation will be needed to determine whether the company has to pay up to $50,000 under the policy’s “line of duty death” coverage.

Easton earlier this year borrowed about $3 million from itself to make a scheduled payment.