Predicting what the Texas Supreme Court would do, the U.S. District Court for the District of Minnesota has allowed an insurer to recover defense costs expended in defending its insured in a liability action.
Insurer Permitted to Recoup Defense Costs Under Quantum Meruit Theory
Predicting what the Texas Supreme Court would do, the U.S. District Court for the District of Minnesota has allowed an insurer to recover defense costs expended in defending its insured in a liability action. Extrapolating from, and expanding on, a Court of Appeals of Texas opinion, the Minnesota court used a <i>quantum meruit</i> theory to allow the insurer to recoup its defense costs.
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