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INSURER'S DUTY TO DEFEND: ARISING OUT OF AN ACT OR OMISSION

In Edwards v. Continental Casualty Company, Plaintiff Appellee, Thomas R. Edwards Sued Defendant-Appellant, Continental Casualty Company, seeking a declaratory judgment that Continental was required to defend him pursuant to a professional liability insurance policy, in an action brought against Edwards by Cal Dive International, Inc. Edwards represented Andrew Schmidt, a commercial diver in a personal injury suit, against Schmidt's employer, Cal Dive. The parties entered into a multi-million dollar settlement agreement before trial under which Cal Dive and its insurer paid a lump sum to Schmidt and funded an additional payment through annuity contracts. As part of the settlement, Cal Dive paid attorney's fees to Edwards through an annuity contract for his representation of Schmidt.

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