This post in our Landmark Montana Supreme Court Decision Series discusses the Montana Supreme Court’s consideration of an insurer’s duty to defend in National Indemnity Co. v. State, 499 P.3d 516 (Mont. 2021).
Continue Reading Landmark Montana Supreme Court Decision Series: The Duty to Defend
Liability insurance typically affords broad defense coverage. But insurers sometimes reserve their right to challenge the insured’s right to a defense, or even outright terminate the defense. When this occurs after the insurer has been in exclusive control of the defense, some courts recognize that the consequences can be catastrophic for the insured defendant. Insurers, therefore, may be estopped from denying coverage where doing so will prejudice the insured. This is exactly what transpired in RLI Ins. Co. v. AST Engineering Corp., No. 20-214 (2d Cir. Jan. 12, 2022), where the Second Circuit affirmed the district court’s decision that an insurer’s attempt to withdraw the defense it had provided to its insured for three years would prejudice the insured.
Continue Reading Defenses Raised Three-Years Too Late Estop Insurer’s Coverage Denial