Answering a certified question regarding a matter of first impression, the Nevada Supreme Court has held that an insurer is entitled to reimbursement of defense costs expended in defense of an insured where a determination is made that the insurer owed no duty to defend and the insurer has clearly and expressly reserved the right to seek reimbursement in writing.  See Nautilus Ins. Co. v. Access Med, LLC, 2021 WL 936076 (Nev. Mar. 11, 2021) (en banc).

Continue Reading Nevada Supreme Court Holds Insurer May Recoup Defense Costs

The United States District Court for the District of North Dakota has held that an insurer had no duty to defend a claim under a lawyers professional liability policy where the insured had prior knowledge that a claim might be made and should have given notice of the potential claim prior to the policy’s effective date. ALPS Prop. & Cas. Ins. Co. v. Brehdal & Assoc., P.C., 2020 WL 6268043 (D.N.D. Oct 23, 2020). The court also held that the insurer was entitled to reimbursement of defense costs where the policy provided such a right, and the insurer reserved its rights to seek such reimbursement.

Continue Reading Prior Knowledge and Prior Notice Exclusions Barred Coverage For Legal Malpractice Claim

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