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Insurance Litigation Insurance Industry Defense Costs

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

Wiley Rein LLP

Insured Cannot Block Coverage For Settlement By Another Insured Based On Consent and Cooperation Provisions in D&O Policy

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The United States District Court for the Southern District of New York, applying New York law, has held that one Insured cannot use consent and cooperation provisions in a D&O insurance policy to block coverage for another...more

Wiley Rein LLP

California SPAC Entitled to Advancement of Subpoena-Related Costs Post-Name Change Based on “Potentially Covered” Standard

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The United States District Court for the Northern District of California, applying California law, has held that two former directors and officers were entitled to advancement of defense costs incurred in connection with SEC...more

Farella Braun + Martel LLP

When Can an Insurer Pursue a Malpractice Claim Against Defense Counsel Retained for an Insured? Part II: When Can an Insurer...

In Part I (”When Can an Insurer Pursue a Malpractice Claim Against Defense Counsel Retained for an Insured”) of our two-part article published by the ABA’s Insurance Coverage Litigation Committee (ICLC), we addressed the...more

Rivkin Radler LLP

New York Insurance Coverage Law Update - January 2024

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Second Circuit Holds That Malpractice Insurer Has No Duty to Defend or to Indemnify Lawyer Because Of Business Enterprise Exclusion- Associated Industries Insurance Company sued its insureds, a lawyer, and his former law...more

Rivkin Radler LLP

Insurance Update - December 2023

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Our December Insurance Update features a few firsts from state high courts. For the first time: •The Supreme Court of Hawaii addresses reimbursement of defense costs. •The Supreme Court of Illinois addresses coverage for...more

Wiley Rein LLP

Second Circuit Affirms Ruling That Excess D&O Insurer Is Not Required to Advance Defense Costs

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The U.S. Court of Appeals for the Second Circuit, applying New York law, held that a former director is not entitled to injunctive relief requiring an excess D&O insurer to pay his defense costs because the director has not...more

Wiley Rein LLP

No Coverage for Lawsuit Where “Claim” First Made at Time of Tolling Agreement

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In a win for Wiley’s client, the Supreme Court of New York for New York County, applying New York law, has held that no coverage is available for a legal malpractice lawsuit because the “claim” was first made before the...more

Rivkin Radler LLP

Insurance Update - October 23, 2023

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Here’s what we discuss in our October Insurance Update. Illinois: Environmental Suits Alleging Non-Compliance with Laws and Regulations Did Not Assert an “Occurrence”- Massachusetts (federal): Insurer May Consider Sums...more

Lowenstein Sandler LLP

Finding the Right Fit: The Duty to Defend vs. the Duty to Reimburse (Part II)

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Hosts Lynda A. Bennett and Eric Jesse of Lowenstein’s Insurance Recovery Group continue their discussion about the difference between the duty to defend, the duty to reimburse, and the duty to advance. They run through the...more

Lowenstein Sandler LLP

The Difference between the Duty to Defend and the Duty to Reimburse: What Policyholders Need to Know

In this episode of “Don’t Take No for an Answer,” hosts Lynda A. Bennett and Eric Jesse of Lowenstein’s Insurance Recovery Group discuss the difference between a duty to defend versus a duty to reimburse. They explain why...more

Wiley Rein LLP

Delaware Law Applies to Coverage Dispute over Stockholder Appraisal Action

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The Delaware Supreme Court has held that Delaware law, rather than Montana law, applies in a dispute over D&O coverage for defense costs incurred in a stockholder appraisal action. Stillwater Mining Co. v. Nat’l Union Fire...more

Wiley Rein LLP

Insurer Entitled to Recoup Defense Costs Absent Express Policy Provision

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The United States District Court for the Eastern District of Michigan, applying Michigan law, has held that, even absent an express policy provision regarding recoupment, an insurer was entitled to recoup defense costs after...more

Cozen O'Connor

Texas Court of Appeals Nixes Plaintiff’s Attorney’s Fees Award Because Offsets Preclude Prevailing Party Status

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The First Court of Appeals in Houston affirmed an analysis that involved math and application of the Texas Insurance Code. In Jones v. Allstate Vehicle & Property Insurance Company, 2022 Tex. App. LEXIS 8896 (Tex....more

Wiley Rein LLP

Irreconcilable “Other Insurance” Clauses Result in Pro Rata Allocation of Defense Costs

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The United States District Court for the Eastern District of Michigan, applying Michigan law, has held that irreconcilable “other insurance” provisions in two polices, each with a concurrent duty to defend, cannot be given...more

Wiley Rein LLP

Written Consent Must be in Writing: Insured Breaches Consent Requirement and Loses Coverage

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Applying Georgia law, a federal district court has held that an insured’s failure to seek consent to incur defense costs pursuant to a consent provision relieved the insurer from any obligation to provide coverage for those...more

Wiley Rein LLP

No Allocation for Defense Costs Incurred in Lawsuit Comprised of Covered and Uncovered “Claims”

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The U.S. District Court for the Northern District of California, applying California law, has held that, under a duty to defend policy, an insurer was required to pay defense costs incurred in a lawsuit where the lawsuit...more

Payne & Fears

Federal Court: Insurer Breaches Duty to Defend By Insisting it Owes Only a “Defense-Follows-Indemnity” Share of Defense Costs

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In an insurance recovery case being handled by Payne & Fears partners Scott Thomas and Sarah Odia, an Arizona federal court, applying Nevada law, recently held that NGM Insurance Company breached its duty to defend its...more

Farella Braun + Martel LLP

In Verizon Decision Careful Review of Insurance Policies Expands Coverage

In Verizon Communications Inc. v. National Union Fire Insurance Co. of Pittsburgh, Pa. the Delaware Superior Court ruled that Verizon was entitled to a defense under its D&O policy for fraudulent transfer claims. Although the...more

Wiley Rein LLP

Nevada Supreme Court Holds Insurer May Recoup Defense Costs

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Answering a certified question regarding a matter of first impression, the Nevada Supreme Court has held that an insurer is entitled to reimbursement of defense costs expended in defense of an insured where a determination is...more

Payne & Fears

Nevada Supreme Court Recognizes an Insurer's Reimbursement Claim

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The Nevada Supreme Court held that insurers may seek reimbursement of defense costs if a court determines that it owed no duty to defend and the insurer reserved reimbursement rights. In Nautilus Insurance Company v....more

Jones Day

New York High Court Confirms No "Blanket Rule" on Reinsurance Limits

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The Situation: This past month, the New York Court of Appeals considered whether New York law imposes a "rule of construction" or "strong presumption" that a reinsurance contract's limit of liability provision caps the...more

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