A New York federal court has held that an insurer was entitled to recoup defense costs where it expressly reserved its right to contest the duty to defend and to recoup defense costs without any demonstrated objection from the insured. Maxum Indemn.Co.v. A One Testing Labs., Inc., No. CV 14-4023 (S.D.N.Y. Dec. 10, 2015). The court also determined that the insurer had no duty to defend the policyholder because the plaintiff in the underlying lawsuit failed to allege an “occurrence” within the meaning of the policy.
Continue Reading New York Federal Court Allows Recoupment of Defense Costs

A Pennsylvania federal court has held that an insurer was entitled to reimbursement of a settlement payment paid on behalf of its insured where the insurer reserved its rights to deny coverage and entered into a reasonable settlement. Am. Western Home Ins. Co. v. Donnelly Distribution, Inc., No. 14-797 (E.D. Pa. Feb. 6, 2015).
Continue Reading Insurer Entitled To Recoup Settlement Payment Made in Underlying Action