Aetna Casualty and Surety Co. v. First Security Bank of Bozeman

In Aetna Casualty and Surety Co. v. First Security Bank of Bozeman, 662 F.Supp. 1126 (D.Mont.1987), a discharged bank employee alleged claims for breach of the implied covenant of good faith and fair dealing attendant contracts of employment and for wrongful termination. She sought punitive damages and damages for lost wages, diminished earning capacity, harm to her reputation, and emotional distress. Aetna sought a declaration that the liability policy issued to the bank did not provide coverage for damages sought by the discharged bank employee. On Motion for Reconsideration, the bank argued that under the personal injury endorsement, the liability policy would provide coverage for the claims asserted against it. Aetna contended that because there were no allegations of libel, slander, defamation or disparagement in the complaint, there was no coverage under the policy. The bank argued that the employee's allegations that Steven Wheeler told her she was fired could constitute defamatory or disparaging material; therefore, the language of the endorsement was ambiguous. Id. at 1131.