Opinion ID: 741876
Heading Depth: 3
Heading Rank: 3

Heading: Canada.

Text: 9 On August 31, 1994, the Boatners, through counsel, sought payment under the uninsured motorist provision of the policy to compensate them for the death of their son. Atlanta Speciality denied coverage, stating that the territorial restriction in the policy precluded coverage because Bradley Boatner's death occurred in Honduras, which plainly brought the Boatners' claim within the terms of the exclusion. 10 The Boatners thereafter filed a declaratory judgment action in state court, and the case was removed to federal court on the basis of diversity jurisdiction. Atlanta Speciality moved for judgment on the pleadings, arguing that the unambiguous terms of the territorial restriction precluded coverage as a matter of law. The district court disagreed, holding that the territorial restriction was against Mississippi public policy as embodied in the UM Act. At the conclusion of discovery, Atlanta Speciality moved for summary judgment, asserting the arguments made in its pre-discovery motion. The district court denied the motion as frivolous and ordered Atlanta Speciality to pay the Boatners' legal expenses in connection with defending the motion. Rather than go through a trial on the merits, Atlanta Speciality stipulated to $275,000 in damages plus attorneys' fees totaling $1,500 (for having to defend the frivolous summary judgment motion). This appeal followed.