Judge: No Bad Faith In Insurer's Decision Not To Defend Kmart In Injury Suit

Judge: No Bad Faith In Insurer's Decision Not To Defend Kmart In Injury Suit

CHICAGO - Even though an Illinois federal judge ultimately found that an insurer owed a duty to defend Kmart Corp. in a personal injury suit that involved an employee of an outside company that operated the retailer's footwear section, the judge on Dec. 18 held that because the coverage was "fairly debatable," the insurer's denial of defense was not in bad faith (Kmart Corp. v. Footstar Inc., et al., No. 1:09-cv-03607, N.D. Ill.; 2013 U.S. Dist. LEXIS 177763).

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