McCarter & English LLP on Pennsylvania Supreme Court Joins Growing Ranks Of Courts In American And Foreign Insurance Company v. Jerry’s Sport Center, Inc. By Holding Insurer Is Not Entitled To Reimbursement Of Defense Costs Where Policy Does Not Includ

By Joann M. Lytle, Nicholas M. Insua, and Anne E. Matthews, McCarter & English, LLP In American and Foreign Insurance Co. v. Jerry’s Sport Center, Inc. , No. 88 MAP 2008, 2010 Pa. LEXIS 1803 (Pa. Aug. 17, 2010), the Supreme Court of Pennsylvania refuted the reasoning under which some...

Howard on Missing The "Buss": Pennsylvania Supreme Court Refuses to Recognize Insurers' Right to Recover Defense Costs Expended With Respect to Non-Covered Claims

By Ted Howard, Partner, Wiley Rein LLP Addressing an issue of substantial current interest and broad disagreement as between liability insurers and policyholders on a nationwide basis, the Supreme Court of Pennsylvania, in its recent decision captioned American & Foreign Ins. Co. v. Jerry’s...

The Continuing Debate Over an Insurer's "Right" to Reimbursement: The Pennsylvania Supreme Court Weighs in Against Reimbursement in a Newly-Decided Case

By Sherilyn Pastor and Alissa Pyrich, Attorneys, McCarter & English, LLP Insurance companies often provide or pay for the defense of a insured before questions of coverage under the policy are resolved. In some instances, this practice results in an insurer's paying for the defense of claims...

SNR Denton on Insurer Recoupment of Noncovered Defense Costs and Settlements

By William Barker, Partner, SNR Denton A recurring issue in the law of liability insurance is whether an insurer that has provided a defense under a reservation of rights (including a reservation of the right to recoup the cost of that defense if a court finds there was no duty to defend) can in...

Top Case: American and Foreign Insurance Co. v. Jerry’s Sport Center, Inc.

In American and Foreign Insurance Co. v. Jerry’s Sport Center, Inc. , No. 88 MAP 2008, 2010 Pa. LEXIS 1803 (Pa. Aug. 17, 2010), the Supreme Court of Pennsylvania refuted the reasoning under which some courts have allowed insurers to seek reimbursement of defense costs pursuant to a reservation...