Opinion ID: 145306
Heading Depth: 3
Heading Rank: 1

Heading: Continental's Suit Against Wodraska

Text: On January 27, 2006, Continental, as subrogee of the Swallows, sued Wodraska to recover the $640,000 it had paid, alleging that Wodraska had negligently started the fire. Wodraska received the complaint, but failed to answer. In May, Continental notified Atlantic that a default judgment would enter if Wodraska did not respond to the complaint by June 30. The following week, Atlantic's representative sent another letter to Wodraska (and a copy to Continental) denying coverage and any duty to defend Wodraska. Wodraska never entered an appearance, and on July 17 the district court entered a default judgment for $763,695.85the amount Continental had paid the Swallows, plus interest and costs. On July 24, 2006, Continental sent Atlantic notice of the default judgment. Atlantic maintained that it owed Wodraska no duty to indemnify or defend, but it provided Wodraska a courtesy interim defense counsel who unsuccessfully moved to reopen the default. Wodraska never satisfied the default judgment.