The second in a pair of opinions in as many days from the U.S. Court of Appeals for the Third Circuit held that insurers are not responsible for defending or indemnifying a juvenile-detention center operator who was involved in the “kids-for-cash” scandal in Luzerne County.
Neither Colony Insurance Co. nor General Star Indemnity Co. will have to cover Robert Powell or his company, Mid-Atlantic Youth Services Corp., against civil suits filed by youths who were held in detention centers that his company ran, the court ruled Thursday. It issued a similar opinion the day before, regarding Robert Mericle, whose construction company built the detention centers.
