Church Mutual Insurance Co. v. Frontier Management, LLC

In an insurance coverage matter, the court was asked to determine whether the insurer had a duty to defend under a claims made insurance policy where a lawsuit was filed after the expiration of the policy but where the attorney in the underlying lawsuit sent written notice, including an attorney’s lien and a demand for preservation of evidence, prior to the termination date of the insurance policy. The district court entered partial summary judgment in favor of the policyholder, finding that the attorney’s letter was a claim under the policy and that it triggered the insurer’s duty to defend. The district court did not determine whether there was a duty to indemnify and stayed the federal case pending the outcome of the underlying lawsuit in state court. The insurer appealed the stay order and asked the appellate court to reverse the partial summary judgment. During the pendency of the appeal, the parties in the state court reached a settlement and the case was dismissed. The Seventh Circuit dismissed the appeal as moot, explaining that the stay order was the only possible basis for appellate jurisdiction as the partial summary judgment order was not final and appealable and that the stay order “evaporated” with dismissal of the state case. (BRENNAN and ST. EVE, concurring)