"Stay Cool" Response Does Not Reject Carrier's Proposed Defense Arrangement


In Endurance American Specialty Co. v. Lance-Kashian & Co., 2011 WL 5417103 (E.D.Cal. Nov. 8, 2011), the District Court held that an insurer properly allocated defense costs and set reasonable defense counsel rates.

Endurance American Specialty Company issued a "Professional, Management, Employment Practices, and Fiduciary Liability Insurance Policy" to Lance-Kashian & Company. In an underlying action, Lance-Kashian, its directors and officers, and Lance-Kashian's sister company, River Rock Properties III (RRP III), were sued by Gottschalks Inc. Gottschalks essentially alleged that the defendants had "wrongfully interfered with Gottschalks' efforts to assign its limited partnership and leasehold interests[,]" among other things. The insureds tendered the underlying action to Endurance for a defense and indemnity and requested Endurance's permission to use Cozen O'Connor to defend the suit. RRP III was not an insured under the Endurance policy.

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Sedgwick LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.