Judge: Insurer Has Duty To Pay Full Amount Of $3.15M Underlying Attorney Fee Award

Judge: Insurer Has Duty To Pay Full Amount Of $3.15M Underlying Attorney Fee Award

CHICAGO - A directors and officers and corporate liability insurance policy indemnified an insured for shareholders' reasonable attorney fees in an underlying lawsuit regardless of how the fees were calculated, an Illinois federal judge ruled April 30, finding that although the insurer has a duty to pay the $3.15 million underlying attorney fee award, it did not vexatiously or unreasonably deny coverage for the multiplied portion of the award (Carolina Casualty Insurance Company v. Merge Healthcare Inc., f/k/a Amica Inc.,  No. 11 C 3844, N.D. Ill., Eastern Div.; 2012 U.S. Dist. LEXIS 60765).

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