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In NY, insurers cannot recoup defense costs absent express policy provision – do other jurisdictions agree?
The New York Appellate Division, Second Department held that, absent express policy language, an insurer is not entitled to recoup defense costs despite a determination that the insurer had no obligation to defend or indemnify the insureds. The insurer reserved its rights to seek reimbursement of the defense costs it paid, but the court found that because the policy did not contain language allowing for recoupment, permitting the insurer to do so would essentially create a contractual right not provided for in the policy.
Kennedys continues to deepen its bench of offerings with the addition of partner Jared Greisman to its New York office. He joins from Goldberg Segalla, where he was a partner in the global insurance services team and chaired his first-party property practice.
Over the last year, state and federal courts in Texas have faced the recurring question of whether the Eight Corners Rule in Texas should be reworked to allow the consideration of extrinsic evidence in certain, limited situations, and if so, when.
Florida high court forecloses recovery for extra-contractual damages in first-party breach of contract actions
The Florida Supreme Court recently issued its opinion in Citizens Property Ins. Corp. v. Manor House, LLC, --- So. 3d ----, 2021 WL 208455 (Fla. Jan. 21, 2021), in which it reiterated the long-standing principle that extra-contractual consequential damages are not recoverable in first-party breach of contract actions.
In Kvaerner Metals Division of Kvaerner U.S., Inc. v. Commercial Union Ins. Co., the Pennsylvania Supreme Court held that claims of faulty workmanship, including the natural consequences of that faulty workmanship, do not arise from an “occurrence”. 908 A.2d 888, 898 (Pa. 2006).
We are pleased to announce a scholarship program aimed at increasing diversity within the insurance industry.
Communications and information exchanged between adjusters and in-house counsel for insurance companies present unique challenges for application of the work product protection, and the law is not uniform in this area. This article will explore the factors considered by courts in determining whether such communications and information are protected from disclosure to the insured and/or third-party claimant and the typical disputes that arise in both coverage and bad-faith litigation.
Split decision by Pennsylvania Supreme Court highlights bad faith issues to be litigated in the future
An evenly divided Pennsylvania Supreme Court dismissed the appeal of a two decade old insurance bad faith action, upholding the lower court’s ruling that the insurer did not act in bad faith. But in doing so, the court’s opposing opinions highlight unresolved and emerging issues in Pennsylvania bad faith law.