Court: Insurance policy excludes Melton’s case

The Clarion-Ledger, 3/28/8

A federal appeals court has found that business exclusions in Allstate Insurance Company’s policies held by Jackson mayor and ex-Mississippi Bureau of Narcotics director Frank Melton meant the insurer was not bound to provide coverage for, or to defend, him in a case involving a memo leaked to the news media.

The 5th U.S. Circuit Court of Appeals ruling filed Wednesday stems from a lawsuit filed by two men over the memo obtained by news organizations in 2003 detailing alleged misuse of government property and funds.

Melton admitted in August 2005 that he had lied for more than two years when he said that he didn’t release the information while he was MBN director.