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REPORTED IN THE COURT OF SPECIAL APPEALS OF MARYLAND No. 79 SEPTEMBER TERM, 1999 ___________________________________

PHILADELPHIA INDEMNITY INSURANCE CO. v. MARYLAND YACHT CLUB, INC. ET AL. ___________________________________ Hollander, Sonner, McAuliffe, John F. (Retired, Specially assigned) JJ. ___________________________________ Opinion by Hollander, J. ___________________________________ Filed: December 10, 1999

This appeal focuses on whether a bodily injury exclusion in a directors' and officers' ("D&O") liability insurance policy applied to a wrongful discharge action instituted against the insureds by a former employee who claimed he was fired from his job because of a work-related injury. Philadelphia Indemnity Insurance Company

("PIIC" or the "Insurer"), appellant, denied indemnity coverage and defense costs in connection with a wrongful discharge suit brought against Maryland Yacht Club, Inc. (the "Club") and three of its officers, Richard A. Weiss, Robin T. Barnes, and Bernard A. Fine, appellees. Dissatisfied with the Insurer's position, appellees

initiated a declaratory judgment action against PIIC in the Circuit Court for Baltimore County, in which they also claimed breach of contract and negligence. After a motions hearing, judgment was

entered in favor of appellees. On appeal, PIIC presents four questions for our review, which we have condensed and reformulated as follows: I. II. Did the circuit court err in construing the bodily injury exclusion? Did the circuit court ignore the "last antecedent" rule when it determined that the bodily injury exclusion did not preclude coverage in this matter?

For the reasons discussed below, we shall affirm.

FACTUAL BACKGROUND PIIC is a Pennsylvania-based insurer authorized to do business

in Maryland.

The Club is a nonprofit corporation that operates a At the relevant time, the

navigating and sailing club in Pasadena.

individual appellees were officers of the Club and members of the Club's Board of Governors1 and Executive Committee (collectively, the "Officers"). Article V,

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Maryland Law