Insurer need not defend city in police officer’s retaliation suit: Court

The 3rd U.S. Circuit Court of Appeals Wednesday agreed that a Pennsylvania city’s insurer is not obligated to defend it against a police officer’s third lawsuit over alleged retaliation for his union activities. 

The three-judge panel said in the unpublished decision in Derek Slaughter et al. v. The Charter Oak Insurance Co. et al. that the allegations in Steven Helms’ third lawsuit against the city of Williamsport, Pennsylvania, and its mayor, Derek Slaughter, filed in April 2021, related back to similar actions filed in 2017 and 2018.

The city obtained an entity employment-related practices liability insurance policy from Charter Oak in January 2019 that only covered claims first made against the municipality while the policy was in effect, court records show.

The city asked Charter Oak to provide a defense against Mr. Helms’ 2021 retaliation lawsuit, but the insurer declined, saying the allegations related back to his earlier actions. The city sued Charter Oak, Mr. Helm and State National Insurance Co. in federal court in Williamsport in 2021.

The parties filed competing motions for judgment on the pleadings, or a decision in their favor based on the allegations in the lawsuit.  The trial judge agreed with Charter Oak that Mr. Helms’ third lawsuit was based on allegations that predated the policy period.

Representatives for the parties did not respond to requests for comment.