With its decision in Shearer & Sons v. Gemini Ins. Co., the Oregon appeals court appears to have placed itself in the duty to defend camp that allows for consideration of extrinsic evidence that is relevant to a coverage issue, so long as it does not impact the liability issues in the underlying action. Oregon is not alone in treating the duty to “defend/extrinsic evidence” issue in this matter – allowing extrinsic facts that are relevant to the issue of coverage, but that do not affect the third party’s right of recovery.
Free download of Shearer & Sons v. Gemini Ins. Co.