Narrowly Redrafted Complaint Still Covered Despite Partial Settlement

(Justices Posner, Flaum, and Manion issued an opinion reversing and remanding the decision of Judge Randa.)  The panel found that a liability insurer with an obligation to defend a third-party action against its policyholder was precluded from avoiding its defense obligation by paying the plaintiff in the third-party action to replead covered and potentially covered claims as non-covered claims. 

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