A & E SUPPLY CO., INC. v. NATIONWIDE MUT. FIRE INS. CO.

Nos. 85-1759(L), 85-1780.

798 F.2d 669 (1986)

A & E SUPPLY COMPANY, INC., Appellee, v. NATIONWIDE MUTUAL FIRE INSURANCE COMPANY, Appellant. A & E SUPPLY COMPANY, INC., Appellant, v. NATIONWIDE MUTUAL FIRE INSURANCE COMPANY, Appellee.

United States Court of Appeals, Fourth Circuit.

Decided August 15, 1986.

Rehearing and Rehearing Denied September 26, 1986.


Attorney(s) appearing for the Case

W. Charles Waddell, III and S.D. Roberts Moore (Guy M. Harbert, III, Gentry, Locke, Rakes & Moore, Roanoke, Va., Howard C. McElroy, White, Elliott & Bundy, Abingdon, Va., on brief) for appellant/cross-appellee;

Eugene K. Street (Thomas R. Scott, Jr., Street, Street, Street, Scott & Bowman, Grundy, Va., on brief), for appellee/cross-appellant.

Before ERVIN and WILKINSON, Circuit Judges, and HOUCK, United States District Judge for the District of South Carolina, sitting by designation.


Rehearing and Rehearing En Banc Denied September 26, 1986.

WILKINSON, Circuit Judge:

This case presents a familiar problem in insurance law. The insured sustained a financial loss for which the policy promised indemnification. The insurer denied coverage, contending without factual support that the insured was responsible for the catastrophe. In the subsequent lawsuit, the insured recovered the proceeds due and also received punitive damages, which it had...

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