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Duty to Defend Insureds

Conn Kavanaugh

Understanding a Reservation of Rights Letter

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You have purchased a liability insurance policy and believe that your insurance coverage will protect you from any claims that may be made against you. You receive a claim letter or are served with a legal document that says...more

Lowenstein Sandler LLP

Allocation: Debunking the “Partial” Duty to Defend Myth

In this episode of "Don’t Take No for an Answer," Lynda A. Bennett and Alexander B. Corson explore the complex issue of "allocation" in the context of defense costs in insurance claims. They discuss what steps to take when...more

Jenner & Block

Client Alert: First Circuit Parses Underlying Complaint to Find Duty to Defend and to Defeat Exclusions

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The duty of a liability insurer to defend a policyholder from litigation is typically described as broad and expansive, extending beyond the insurer’s duty to indemnify. The duty to defend generally obliges an insurer to...more

Bennett Jones LLP

It's Not "All the Facts and Nothing but the Facts": Assessing an Insurer's Duty to Defend

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In Optrics Inc. v Lloyd’s Underwriters, 2022 ABCA 26 [Optrics] the Alberta Court of Appeal highlights the limits on summary applications by insureds seeking confirmation that an insurer must defend a claim against the...more

Wiley Rein LLP

Applicability of Insured v. Insured Exclusion Can Be Determined By Reference to Complaint Alone

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The United States District Court for the Southern District of Indiana has held that an insured v. insured exclusion barred coverage for a lawsuit brought in the name of a music fraternity against its president and executive...more

Blank Rome LLP

California Corner: Insurer’s Failure to Immediately Commence Defense Waives California Civil Code Section 2860 Rate Limitations...

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California courts strictly enforce an insurer’s duty to immediately commence defending its insured. The insurer’s delay in doing so, even if the delay is short, constitutes a breach of this important duty. In fact, California...more

Rivkin Radler LLP

New York Insurance Coverage Law Update

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United States District Court Orders Insured To Produce Certain Pre-Litigation Documents But Not Others Deemed Work Product 99 Wall sued Allied World seeking coverage under a property policy for water losses at 99 Wall’s...more

White and Williams LLP

Applying Mighty Midgets, NY Court Awards Legal Expenses to Insureds Which Defeated Insurer’s Coverage Claims

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Is an insured (or putative insured) entitled to recover its legal expenses if it is successful in coverage litigation? In some states, no. In many other states, yes – based on either a statute or common law. In New York...more

Blake, Cassels & Graydon LLP

Alberta Court Releases Precedent-Setting Decision on Insurers’ Right and Duty to Defend

In its recent decision in Temple Insurance Company v. Sazwan, the Court of Queen’s Bench of Alberta (Court) considered the scope of, and exceptions to, an insurer’s right and duty to defend. This is the first decision in...more

Foley Hoag LLP

Obligations of Insurer and Policyholder - October 2017

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Scope: The “Comparison Test” - The defense obligation arises when a defense is needed: at the outset of the suit. It follows that, unlike the duty to indemnify (which depends on the “true” facts as they are determined in...more

Saul Ewing LLP

Insurers’ Duty to Defend Does Not Require Coverage for Counterclaims in Massachusetts

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In a win for insurers, the Massachusetts Supreme Judicial Court (“SJC”) ruled on June 22, 2017 that a duty to defend does not require insurers to fund an insured’s counterclaim, even if it is “inextricably intertwined” with a...more

Troutman Pepper Locke

Great American Insurance Co. v. Hamel: The Texas Supreme Court Clarifies the Circumstances under which a Judgment Entered against...

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In Great American Insurance Co. v. Hamel, 2017 WL 2623067 (Tex. June 16, 2017), the Texas Supreme Court more precisely defined the circumstances under which an insurance company that wrongfully fails to defend an insured may...more

Jaburg Wilk

What is a Morris Agreement?

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A “Morris Agreement” is a “settlement agreement entered into when the insurer is defending under a reservation of rights under which the insured stipulates to a judgment, assigns his rights against the insurer to the...more

Cozen O'Connor

State Farm v. Hansen: Nevada Supreme Court Adopts California Independent Counsel Rules

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The Nevada Supreme Court has adopted California’s independent counsel rules, holding that an insured is entitled to select its own counsel where an insurer’s coverage reservation creates an actual conflict of interest between...more

Proskauer Rose LLP

Seventh Circuit Issues Stern Warning For Insurers That Reject Their Duty to Defend

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The first line of the Seventh Circuit’s opinion says it all: “This case provides a warning for insurance companies who refuse to defend their insureds.” As the court’s admonishment suggests, insurers that improperly refuse to...more

Haight Brown & Bonesteel LLP

CA Supreme Court Finds “Consent-to-Assignment” Clauses Unenforceable After Loss Occurs During the Policy Period

In Fluor Corporation v. Superior Court (No. S205889; filed 8/20/15), the California Supreme Court overruled its earlier decision in Henkel Corp. v. Hartford Accident & Indemnity Co. (2003) 29 Cal.4th 934, holding that...more

Proskauer Rose LLP

California Supreme Court Limits Enforceability of Anti-Assignment Clauses

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In a unanimous decision handed down by the California Supreme Court on August 20, 2015 in Fluor Corporation v. Superior Court, the court removed a significant obstacle facing companies that want to assign their interests in a...more

Haight Brown & Bonesteel LLP

CA Supreme Court Permits Insurers to Bring Direct Actions Seeking Reimbursement of Excessive Fees Against Cumis Counsel Under...

The California Supreme Court held in Hartford Casualty Insurance Company v. J.R. Marketing, L.L.C. (Squire Sanders) (8/10/2015 - #S211645) that if Cumis counsel, operating under a court order which such counsel drafted and...more

Proskauer Rose LLP

Montana Joins Majority of Courts Holding That Insurers Must Establish Prejudice to Disclaim Coverage Based on an Insured’s Late...

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Joining a majority of states that have addressed the issue, the Montana Supreme Court recently held that “an insurer who does not receive timely notice required by the terms of an insurance policy must demonstrate prejudice...more

Cole Schotz

Even if You Lose You May Win (Attorneys’ Fees That Is)

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In New Jersey, if a policyholder is required to sue its insurance company for coverage, Court Rule R.4:42-9 allows a policyholder to recover attorneys’ fees if it is successful in obtaining coverage. The purpose of this...more

Neal, Gerber & Eisenberg LLP

What Peppers Counsel Needs to Know Before Agreeing to Follow Insurer Litigation Guidelines

When an insurer agrees to defend its insured against a potentially covered claim without reserving the right to deny coverage, the insurer usually has the right to control the defense of the underlying lawsuit. See 3 Jeffrey...more

Nossaman LLP

California Insurance Coverage Cases Raising Key Issues On The Horizon

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This year, 2014, is lining up with interesting insurance coverage cases pending across the country which may lead to far reaching decisions. In California specifically, it is apparent to us that the Hartford Insurance...more

Saul Ewing Arnstein & Lehr LLP

California Court of Appeals: Insurer Liable for Settlement Negotiated by Insured

California Court of Appeals affirms a jury verdict finding an insurer liable for settlement costs of its insured when the insurer refused to defend its insured in bad faith. San Diego Apartment Brokers (“Brokers”)...more

McDermott Will & Emery

The New York Court of Appeals Considers the Consequences of a Liability Insurer’s Breach of the Duty to Defend

What are the consequences of a liability insurer’s breach of the duty to defend its insured against a potentially covered claim? Recent decisions from the New York Court of Appeals highlight differing views nationwide on...more

Cozen O'Connor

A Good Faith Review of 2013

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With the arrival of the new year, many are applying the mantra “out with the old, in with the new.” Although this may be motivational for personal resolutions, it does not generally apply in the context of law as last year’s...more

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