Pennsylvania Federal Court Gives Policyholders An Enhanced TSA Pat-Down

Eastern District Recognizes Insurer’s Right of Reimbursement of Settlement Payments By Randy Maniloff, Partner, White and Williams LLP We’ve all been there. An insurer is defending its insured in an action under a reservation of rights on account of a potential coverage defense. An...

Reed Smith on The Insurance Company’s Settlement of Tort Claims: An Analysis of In Re East 51st St. Crane Collapse Litigation

By John Berringer and Jennifer Katz, Reed Smith LLP In In Re East 51st St. Crane Collapse Litigation , the New York Supreme Court permitted the primary insurance company to enter into a settlement which clearly was not “in the best interests of the insured.” That decision set an extremely...

Pennsylvania Appellate Court Establishes New Approach To An Insurer's Offer Of A Defense Under A Reservation Of Rights

By Joshua Broudy and James Killelea A Pennsylvania intermediate appellate court recently prescribed new rules relative to the defense of insureds under a reservation of rights. In Babcock & Wilcox Company, et al. v. American Nuclear Insurers, et al., 2013 PA Super. 174, 2013 PA Super. LEXIS 1630...

Separating Fact From Fiction: Strategies For Contesting The Excess Consent Judgment

By Brian Webb I. Introduction Few legal maneuvers generate greater skepticism–among courts and insurers–than the excess consent judgment, an increasingly common settlement device used in liability cases. An excess consent judgment is a type of judgment entered by agreement between...

Recent Cases Discussing The Advice Of Counsel Defense: The Good, The Bad, And The Discovery

By David A. Mercer Introduction The gravamen of a third-party claim of bad faith is that the insurer failed to settle a claim against an insured when it had the opportunity to do so.1 The essence of the claim is that the insurer acted solely on the basis of its own interests, failed to properly...

Insured May Settle Claim Before Suit if Insurer Wrongfully Denies Coverage

By Jill Berkeley , Partner, Neal, Gerber & Eisenberg LLP In Selective Ins. Co. v. Cherrytree Cos. , 2013 IL App (3) 120959 [ enhanced version available to lexis.com subscribers ], the Illinois Appellate Court for the Third District drove the final nail in the insurer’s “if there...

Supreme Court Awards The Kitchen Sink For Insurer’s Breach Of The Duty To Defend

If an insurer is determined to have breached the duty to defend, consequences will attach. It may be that the insurer must pay for the defense costs that it otherwise owed. Or the consequences may be much harsher – the insurer may lose the right to assert otherwise applicable defenses to indemnity...