W. EUGENE DAVIS, Circuit Judge:
In this diversity case, the appellant, National Union, appeals a district court declaratory judgment that appellant's insurance policy afforded coverage for a loss which was reduced to judgment in a Louisiana court by appellee, Cagle, et al. In a cross-appeal, the appellee challenges the district court's judgment exonerating National Union from any obligation for penalties. We affirm the district court's judgment in all respects.
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