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Insurers' Rights to Recoup Defense Costs
Commercial General Liability (“CGL”) policies typically provide two distinct benefits to policyholders: defense against potentially covered claims, and indemnity against covered claims. Because the duty to defend is broader than the duty to indemnify, it is as important, if not more important, than the duty to indemnify. See, e.g., Buss v. Los Angeles Superior Court, 65 Cal.Rptr.2d 366, 373, 939 P.2d 766, 773 (1997). Insurers often accept their defense obligations, however, subject to reservation of their rights to assert non-coverage. Now, with increasing frequency, insurers also are demanding reimbursement if it turns out that the liability claim was not covered.
When an insurer is presented with a claim, it may (if appropriate) deny coverage, and advise the policyholder of the basis for its non-coverage position. If a claim is indisputably covered, the insurer must accept its coverage obligations. If it is unclear to the insurer whether a claim is covered, the insurer may (and in some states must) either: 1) defend the suit; 2) defend the suit under a reservation of rights; or 3) seek a timely declaratory judgment of no coverage. See, e.g., Employers Ins. of Wausau v. Ehlco Liquidating Trust, 708 N.E.2d 1122, 1134-35 (Ill. 1999); Shell Oil Co. v. AC&S, Inc., 649 N.E.2d 946, 949 (Ill. App. Ct. 1995). If the insurer fails to take one of these three steps and is later found to have had a duty to defend, the insurer then may be estopped from raising any policy defenses to coverage. Employers Ins. of Wausau v. Ehlco Liquidating Trust at 1122, 1135; Korte Construction Co. v. American States Ins., 750 N.E. 2d 764, 769 (Ill. App. Ct.), appeal denied, 763 N.E. 2d 319 (Ill. 2001); Shell Oil v. AC&S, Inc., 649 N.E.2d 946, 949-50 (Ill. App. Ct. 1995).
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
Beach Boys Songs Written Decades Ago Triggered Current Quarrel With Lawyers
There's current litigation in the ongoing Beach Boys litigation saga. A lawsuit filed in 2019 against Nevada residents Mike Love and his wife Jacquelyne in the U.S. District Court for the District of Nevada that alleges inaccurate payment by the Loves under the retainer agreement and seeks $84.5 million in damages.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
Transfer Tax Implications on Real Property Leases
The real property transfer tax does not apply to all leases, and understanding the tax rules of the applicable jurisdiction can allow parties to plan ahead to avoid unnecessary tax liability.
When Is a Repair Structural or Nonstructural Under a Commercial Lease?
A common question that commercial landlords and tenants face is which of them is responsible for a repair to the subject premises. These disputes often center on whether the repair is "structural" or "nonstructural."