Insured Entitled Only To 'Reasonable' Fees In Underlying Suit, Judge Rules

Insured Entitled Only To 'Reasonable' Fees In Underlying Suit, Judge Rules

ST. PAUL, Minn. - In light of a previous ruling that had defined what portion of an insured's defense costs were "reasonable" and, therefore, reimbursable by its insurer, a Minnesota federal judge on April 4 dismissed the policyholder's breach of contract claim against Arch Specialty Insurance Co. for not paying the "unreasonable" portion of those costs (Ceres Environmental Services Inc. v. Arch Specialty Insurance Co., No. 0:10-cv-04570, D. Minn.; 2012 U.S. Dist. LEXIS 47633).

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