DUTY TO DEFEND FOR PAIR OF AU PAIR COMPANIES
Three companies supplied au pairs to customers in Colorado, and perhaps elsewhere. Allegedly they were not paying those participating in their program enough through various devices, so a number of the au pairs sued them all for price fixing under the anti-trust law. The groups also sued two of the companies for breach of fiduciary duties and misrepresentations to them, as well as under other legal theories.
The companies sought coverage from their insurer, Colony Insurance Company. It denied even a duty to defense. The District Court in Colorado agreed with the insurer that anti-trust violations are not insured, since they are not integral to the services sold. The third company, therefore was not entitled to a duty to defend.