Nationwide Mutual Insurance Company v. William Kardosh, Mary Ellen Kardosh

District Court, E.D. Pennsylvania·Decided July 23, 2026·No. 2:25-cv-05680·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA

NATIONWIDE MUTUAL INSURANCE : CIVIL ACTION COMPANY : : No. 25-5680 v. : : WILLIAM KARDOSH, MARY ELLEN : KARDOSH :

MEMORANDUM Judge Juan R. Sánchez July 23, 2026 Plaintiff Nationwide Mutual Insurance Company (“Nationwide”) seeks a judgment declaring it has no duty to defend or indemnify pro se Defendants William Kardosh and Mary Ellen Kardosh (collectively “the Kardoshes”) in a state lawsuit brought against them by their daughter, Julia Kardosh. Nationwide asserts the allegations in Julia’s complaint do not fall within the terms and conditions of the insurance policies it issued to the Kardoshes. The Kardoshes argue the coverage issues are not ripe, they are entitled to defense under the terms of their insurance policies, and Nationwide is estopped from withdrawing its defense. Both parties have moved for summary judgment. The Court will grant Nationwide’s motion because this action is ripe, the insurance policies do not cover the allegations brought by Julia, and Nationwide is not estopped from withdrawing its defense of the Kardoshes. BACKGROUND This case stems from an unfortunate family dispute. Julia Kardosh is the daughter of Defendants Mary Ellen Kardosh and William Kardosh. Am. Compl. ¶¶ 1-3, Dkt. No. 1-4. On July 1, 2025, Julia filed a pro se civil action against William and Mary Ellen in the Court of Common Pleas of Chester County.1 See generally Compl., Dkt. No. 1-3. She brought claims alleging a scheme by William and Mary Ellen to unlawfully evict Julia from their family home and gain custody of her children. Id. at 2. During the relevant timeframe, the Kardoshes were insured by Nationwide under both a

Homeowner Policy (“HO Policy”) and a Personal Umbrella Liability Policy (“PUL Policy”). See HO Policy, Dkt. No. 1-5; PUL Policy, Dkt. No. 1-6. Under the PUL Policy, Nationwide agreed to defend the Kardoshes against any lawsuit that arises out of an “occurrence” as defined by the policy.2 The PUL Policy defines an “occurrence” as “an accident” that “must result in ‘bodily injury’, ‘property damage’, or ‘personal injury’ caused by an ‘insured’.”3 Relevant to this case, “personal injury” is defined as an injury arising out of a list of specific torts.4 But the PUL policy explicitly excludes coverage for bodily injury or personal injury to the insured or a family

1 The state court action is docketed under the caption Julia Kardosh v. Mary Ellen & William Kardosh, docket no. 2025-05806-TT (C.P. Chester).

2 “We will defend a suit against an ‘insured’, with attorneys of our choice, resulting from an ‘occurrence’ covered by this policy.” PUL Policy, Dkt. No. 1-6 at 14.

3 “‘Occurrence(s)’ means an accident including continuous or repeated exposure to the same general harmful conditions. It must result in ‘bodily injury’, ‘property damage’, or ‘personal injury’ caused by an ‘insured’. . . . The ‘occurrence’ resulting in the ‘personal injury’ must be due to an offense committed during the policy period.” Id. at 11.

4 “‘Personal injury’ means injury arising out of one or more of the following offenses, but only if the offense was committed during the policy period: a. False arrest, detention or imprisonment; b. Malicious prosecution; c. The wrongful eviction from, wrongful entry into, or invasion of the right of private occupancy of a room, dwelling or premises that a person occupies, committed by or on behalf of its owner, landlord or lessor; d. Oral or written publication in any manner, including electronic publication, of material that slanders or libels a person or organization or disparages a person’s or organization’s goods, products or services; or e. Oral or written publication in any manner, including electronic publication, of material that violates a person’s right of privacy.” Id. member.5 The policy further defines a “family member” as “a person related to [the insured] by blood, marriage or adoption who is a resident of [their] household.”6 Together these two provisions are commonly referred to as a household exclusion. The policy also excludes coverage for punitive damages.7

The HO Policy also covers defense of lawsuits arising out of an “occurrence,” and contains a household exclusion and an exclusion for punitive damages identical in substance to those in the PUL Policy. HO Policy, Dkt. No. 1-5 at 12-13, 29, 35, 41. The HO Policy additionally only covers bodily injury and property damage. Id. at 11, 35. On July 9, 2025, after receiving notice of Julia’s lawsuit, Nationwide opened a claim, commenced its investigation into the matter, and assigned an attorney to represent Mary Ellen and William. Defs.’ Mot. Summ. J. 6, Dkt. No. 10. On August 11, 2025, Julia filed an amended complaint, asserting claims of Abuse of Process (Count I), Civil Conspiracy (Count II), Defamation (Count III), Intentional Infliction of Emotional Distress (IIED) (Count IV), Intrusion Upon Seclusion (Count V), Conversion (Count VI), Breach of Fiduciary Duty (Count VII), and

Interference with Parental Rights (Count VIII). Am. Compl. ¶¶ 36-88. She seeks compensatory and punitive damages in addition to injunctive relief awarding her custody rights of her children. Id. at 25-26.

5 “Excess liability and additional coverages do not apply to . . . ‘[b]odily injury’ or ‘personal injury’ to you or a ‘family member’ . . . .” Id. at 15, 18.

6 “‘Family member’ means a person related to you by blood, marriage or adoption who is a resident of your household.” Id. at 11.

7 “Excess liability and additional coverages do not apply to . . . a. Judgments; b. Costs; c. Attorney fees; or d. Claims against an ‘insured’ for punitive or exemplary damages.” Id. at 15, 20. On October 1, 2025, Nationwide sent a Reservation of Rights letter to William and Mary Ellen. Dkt. No. 10 at 126. In the letter, Nationwide stated neither the PUL Policy nor the HO Policy covers the defense of or indemnification for the lawsuit. Id. at 132. It concluded (1) both policies are limited to bodily injury or property damage, neither of which was pled by Julia, (2) a

household exclusion in both policies bars coverage for claims regarding events that occurred while Julia resided with her parents, and (3) the allegations of intentional actions are not covered under the policies. Id. The Kardoshes claim they received the letter on October 3, 2025. Defs.’ Mot. Summ. J. 6. On October 2, 2025, Nationwide filed this federal court action against the Kardoshes and Julia seeking a declaration that it does not have to defend or indemnify the Kardoshes for the underlying state court action. Dkt. No. 1. On October 21, 2025, William and Mary Ellen filed an answer, electing to proceed pro se. Dkt. No. 9. On November 20, 2025, the Court held a Rule 16 conference with the Kardoshes and Nationwide, in which Julia did not participate. Dkt. No. 20. Nationwide indicated during the conference that Julia could be dismissed from the case and later

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Nationwide Mutual Insurance Company v. William Kardosh, Mary Ellen Kardosh, (E.D. Pa. 2026).

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