Publications

A Promise To Pay Is Just That: Two Courts Reject Insurers’ Bids To Escape Their Coverage Obligations by Complaining About Third Party Recoveries or Reductions in Liabilities

December 6, 2022 Blog
Policyholder Perspective

An insurer in Washington could not eliminate its coverage obligation based on its insured’s recovery from a third party. T-Mobile USA, Inc. v. Steadfast Ins. Co., et al., No. 82704-9-I, 2022 WL 17246715 (Wash. Ct. App., Nov. 28, 2022). And in an Illinois case, an insurer could not refuse to cover its insured simply because its insured was able to deduct part of its settlement payment (which the insurer had refused to cover) from its tax obligation. Liberty Ins. Underwriters, Inc. v. Astellas Pharma US, Inc., Circuit Court of Cook County, Illinois County Dept., Chancery Div., 2019 CH 14483 (Nov. 28, 2022). In both cases, the courts did not have any sympathy for insurers that refused to perform under their insurance policies in the first place and then tried to take advantage of their insureds’ recoveries or reductions in liabilities. And the courts were intent on holding the insurers to the plain language of the policies and the promises they had made to the insureds.  Read the full Policyholder Perspective blog post here.

Firm Highlights

Publication

Reporting Dispute Claims Within Closely Held Wineries

Many wineries operate as closely held companies, meaning they’re owned by an individual or small group of shareholders, who are often members of the same family. Disputes regarding ownership interests can arise, particularly when directors...

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News

Farella Braun + Martel Earns 2024 Best Law Firms® Rankings

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Publication

BIPA Liability: Existing CGL Coverage May Provide a Lifeline for Policyholders

Developments in the law have increased the potential liability that companies could face under the Illinois Biometric Information Privacy Act (BIPA), but fortunately for policyholders, Illinois case law has also solidified coverage for BIPA...

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Publication

When Can an Insurer Pursue a Malpractice Claim Against Defense Counsel Retained for an Insured? (Part One)

By Jalen M. Brown, Kristin Davis, Shanti Eagle, PeterJ. Georgiton, and John Mark Hart When an insurer accepts an insured’s tender and agrees to provide a defense, it is often an afterthought as to whether...

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Publication

Insurance Market Crushes Wineries and Wine Country Homeowners

We keep hearing about how difficult it is for winery and vineyard owners to get property insurance these days, both for their homes and their wine businesses in California’s wildfire-prone areas. Those who have...

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Publication

Regulatory Changes Underway To Address Dwindling California Property Insurance Market

We keep hearing about how difficult it is for our clients to get property insurance these days, both for homes and businesses in Northern California’s wildfire-prone areas. Which, of course, is most of Northern...

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Publication

When Can an Insurer Pursue a Malpractice Claim Against Defense Counsel Retained for an Insured? (Part Two)

By Jalen M. Brown, Kristin Davis, Shanti Eagle, Peter J. Georgiton, and J. Mark Hart Part 1 of our two-part article addressed the circumstances in which an insurer can directly pursue malpractice claims against...

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Publication

Disputes Between Shareholders May Not Be Governed by Fiduciary Duties but Could Be Covered by Insurance

(As published in Private Company Director ) Disputes regarding ownership interests often arise in the context of closely held corporations, particularly when directors, officers, or majority shareholders sell or acquire ownership interests in the...

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