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An Insurer’s Defense Under One Policy Does Not Excuse Its Breach Under Another

By Tyler C. Gerking, Partner, Farella Braun + Martel LLP Does an insurer’s defense of its insured under one policy excuse its breach of the duty to defend under another? A California Court of Appeal recently concluded: Not if the insured is potentially liable for an amount in excess of the policy...

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...

In Nevada, Liability Insurer Cannot Exhaust Policy Before Judgment by Interpleading Funds

By Andrew B. Downs , Partner, Bullivant Houser Bailey PC Last week, the Nevada Supreme Court joined California and some other states in holding that a liability insurer may not interplead its policy limits before a final judgment is entered against the policyholder for the purpose of exhausting its...

New Appleman Insurance Bad Faith Litigation, Second Edition - § 3.06: Duties of Insurer-Selected Defense Counsel in Partial Coverage or Excess Exposure Cases, and § 3.07: Insurer Liability for Improper Defense

New Appleman Insurance Bad Faith Litigation, Second Edition is a one-volume law and practice guide that discusses the duties and obligations of insurers to their insureds, and the consequences of the insurer's breach of its duty of good faith and fair dealing. It discusses both first party and third...

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...

"Non-Trivial Probability" of Excess Judgment Obligates Insurer to Pay for Independent Defense Counsel

The court in Perma-Pipe, Inc. v. Liberty Surplus Insurance Corporation , Case No. 13 C 2989, 2014 U.S. Dist. LEXIS 54867 (N.D. Ill. April 21, 2014), [ enhanced version available to lexis.com subscribers ], held that a CGL insurer breached its duty to defend by refusing to pay for independent defense...

Dentons on Taylor v. Allstate Insurance Co.: When Is a Texas Liability Insurer Liable for Inadequate Defense of a Case?

In Taylor v. Allstate Insurance Co.,[1] a Texas court of appeals held that the only common-law tort causes of action available against a liability insurer for allegedly inadequate defense of its insured are breach of contract and a Stowers[2] (failure to settle) claim, but that a contract claim might...

Insurer’s Duty to Defend Did Not Arise until Insurer Was Provided with All Necessary Information to Determine the Existence of Coverage

Carrier’s Right to Control the Defense Includes the Right to Appoint Counsel of Its Choosing and to Settle Claims without the Participation of the Insured Travelers Prop. Cas. Co. of Am. v. Kaufman & Broad Monterey Bay, Inc ., 2015 U.S. Dist. LEXIS 16952 (N.D. Cal. Feb. 11, 2015) [subscribers...