Big Burd: New Jersey Supreme Court Issues Rare Duty to Defend Decision

By Randy Maniloff, Partner, White and Williams LLP Garden State Maintains its Duty to Depend Standard. What do New Jersey’s duty to defend and favorite son have in common? They both did it their way. * * * New Jersey’s duty to defend is unique. That’s for...

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...

Excess Insurance and Umbrella Coverage – New Appleman on Insurance Law Library Edition, Chapter 24

By Douglas R. Richmond, Senior Vice President, Aon Risk Services Businesses and individuals seeking liability protection have varying insurance coverage needs. One concern is the amount of coverage required to shield against potential losses. Some insureds may see the breadth of coverage as a concern...

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...

Endurance Coverage: “Top Ten Insurance Cases Of The Year” Reaches The Decade Mark

Randy J. Maniloff, White and Williams, LLP For the past ten years I have had the privilege of publishing an end-of-year article in Mealey’s Litigation Report: Insurance that discusses the ten most significant insurance coverage decisions from the year gone by. Like anything that is done for...

Ten Most Significant Insurance Decisions of 2010: Case Summaries and Core Search Terms from Lexis.com

The following ten cases were selected by White & Williams LLP partners Randy J. Maniloff and Joshua A. Mooney for analysis in their annual article Endurance Coverage 2010: The Year’s Ten Most Significant Insurance Decisions Reaches the Decade Mark. What follows are summaries and core search...

The June 2011 Release of New Appleman New York Insurance Law is Now Available on Lexis.com

The newest release of New Appleman New York Insurance Law is available on lexis.com as of June 23, 2011. The release contains updates to reflect recent case law and interpretations issued by the Department of Insurance and the Office of General Counsel, as well as recent statutory and regulatory amendments...

Jungleland: New Jersey and the Duty to Defend

Big Man ‐ ifesto From The Supreme Court Applying A Broad Duty to Defend Randy J. Maniloff, White and Williams, LLP "There's an old joke - um... two elderly women are at a Catskill mountain resort, and one of 'em says, 'Boy, the food at this place is really terrible.' The...

Blogs from the ILC Advisory Board: Richards v. Sequoia Insurance Co.: Liability Insurer Not Obliged to Compensate Insureds for Defending Themselves While Insurer Is Considering Whether To Provide Defense

By William T. Barker, Partner, SNR Denton In Richards v. Sequoia Insurance Co. ,[1] insured attorneys, who were instructed to arrange for their own defense pending Sequoia's coverage decision, retained counsel on the basis that the insureds would do most of the investigation, legal research,...

Arizona Appeals Court Takes Different Tack In Addressing Independent Counsel Fees

Will The Decision Now Go From Phoenix, Arizona All The Way To Tacoma, Philadelphia, Atlanta, L.A.? "I say put money in thy purse." Othello Act 1, scene 3 Randy J. Maniloff, White and Williams, LLP Don't be fooled by the Shakespeare quote. I'm not that smart. I wouldn't...

Perkins Coie LLP on It Is Time for Insurers to Get Off the Fence: New York Courts Reject Blanket Reservations

By Vivek Chopra, partner, and Laura Basford, associate , Perkins Coie LLP This commentary discusses an apparent shift in New York law limiting the effectiveness of an insurance company's blanket reservation of rights letter when it is aware of a rescission-based defense to coverage. The New York...

SNR Denton LLP on Maxwell v. Hartford Union High School District: Wisconsin Supreme Court Rejects Broadening Coverage by Estoppel but Approves Forfeiture of Coverage Defenses for Breach of Duty to Defend

By William T. Barker, Partner, SNR Denton Most jurisdictions hold that a liability insurer that assumes control of its insured's defense without reserving a right to deny indemnity can be estopped from asserting indemnity coverage defenses that it knew or should have known about but failed...

SNR Denton, US, LLP on Downhole Navigator, LLC v. Nautilus Insurance Co.: Fifth Circuit Concludes That Texas No Longer Allows a Policyholder to Demand Independent Counsel Merely Because the Insurer Offers a Defense under Reservation of Rights

By William T. Barker, Partner, SNR Denton Older Texas cases had indicated that, whenever a liability insurer offered a defense under reservation of rights, the insured was entitled to demand defense by independent counsel, at the insurer's expense. In Downhole Navigator, LLC v. Nautilus Insurance...

SNR Denton LLP on Hoover v. Maxum Indemnity Co.: Georgia Supreme Court Seems To Hold That Liability Insurance Disclaimer on One Ground Forfeits Other Grounds

By Ronald D. Kent, Partner, SNR Denton In Hoover v. Maxum Indemnity Co., the Georgia Supreme Court held that a liability insurance coverage disclaimer could not reserve a right to assert additional grounds later. If taken literally, this apparently places Georgia in a small minority of jurisdictions...

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...

Appeals Court Provides Detailed Discussion Of Allocation Between Covered And Uncovered Claims

I have said this so many times. But given the huge importance of the issue, it is restated here. If you’ve read this before please forgive me. You have just written the greatest reservation of rights letter ever. If Felix Unger handled claims, this is what his letter would look like. If there were...

Insurer Has No Duty to Pay for Independent Counsel and May Reassert Its Right to Control the Defense When the Insurer Withdraws the Reservation of Rights Triggering the Insured’s Right to Independent Counsel

Swanson v. State Farm General Insurance Co., 2013 Cal. App. LEXIS 759 [ enhanced version available to lexis.com subscribers ], presented an issue of first impression regarding whether an insurer has a duty to provide an insured with independent counsel, pursuant to California Civil Code section 2860...

Chickens And Eggs: What Comes First – Underlying Case Or Coverage Case?

It is one of the most frequently occurring and important issues on the coverage landscape. Yet, for some reason, guidance can sometimes be unclear, inconsistent or just plain elusive. Here is the scenario. An insurer is defending its insured in an underlying action under a reservation of rights. Uncertainty...

Federal Court Lists 10 Requirements For A Reservation Of Rights Letter

“What’s in a name? That which we call a rose by any other name would smell as sweet.” William Shakespeare, “Romeo and Juliet,” Act II, Scene 2. [Well, actually, Wikipedia.] But the same cannot be said of reservation of rights letters. In fact, just the opposite. A letter...

MUST READ Reservation Of Rights Case (A Top 10 Case Of 2014)

I’m capable of writing a hyperbolic headline in Coverage Opinions now and then. Really, I am. But this isn’t one of them. If you read only one article in this issue of CO , make it this one. In Builders & Exteriors, Inc. v. Mid-Continent Casualty Co., No. WD 76880 (Mo. Ct. App. Sept...