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SCOTTSDALE INS. CO. v. SUBSCRIPTION PLUS, INC.

No. 01-3484.

299 F.3d 618 (2002)

SCOTTSDALE INSURANCE CO., Plaintiff-Appellant, v. SUBSCRIPTION PLUS, INC. and Karleen Hillery, Defendants-Appellees.

United States Court of Appeals, Seventh Circuit.

Decided July 15, 2002.

Attorney(s) appearing for the Case

Michael Fitzpatrick, Brennan, Steil, Basting & MacDougall, Janesville, WI, for Plaintiff-Appellant.

Robert W. Dace, McAfee & Taft, Oklahoma City, OK, for Defendants-Appellees.

Before FLAUM, Chief Judge, and WOOD, JR., and POSNER, Circuit Judges.

POSNER, Circuit Judge.

This appeal requires us to consider the duty of a liability insurance company (Scottsdale) to defend its insureds (Subscription Plus and Karleen Hillery) — especially against bad claims. Subscription Plus, owned and operated by Hillery, is in the business of processing magazine subscriptions. It made a contract with Y.E.S.!, a sales agency, whereby Y.E.S.! was to procure magazine subscriptions for Subscription Plus. Salesmen employed...

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