About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline



Case Citations 1 (July 2018 through April 2019)

handle is hein.ali/aliliabil9924 and id is 1 raw text is: 





                        LIABILITY INSURANCE


                                      (DRAFTS)


     CHAPTER 2. MANAGEMENT OF POTENTIALLY INSURED LIABILITY CLAIMS

                                      TOPIC 1. DEFENSE

§ 19. Consequences of Breach of the Duty to Defend

E.D.Pa.2018. Quot. in disc.; com. (b) quot. in disc. (quoting § 19 and com. (b) to § 19 of Prop. Final
Draft No. 1, 2017. § 19 has since been revised; see Official Text.). Insurer sued insured that provided
maintenance services at refineries, seeking a declaration that insured's pollution policy did not cover an
underlying lawsuit filed against it by the estate of an employee who developed leukemia and died as a
result of exposure to harmful chemicals at the refineries; insured counterclaimed, alleging that insurer
breached its duty to defend. This court denied in part insured's motion for summary judgment, holding
that, although insurer breached its duty to defend insured, insurer could still contend that it did not have
a duty to indemnify insured for a settlement insured entered into with employee under the applicable
New York law. The court rejected insured's argument that insurer was required to indemnify insured
because it breached its duty to defend under Restatement of the Law of Liability Insurance § 19 (Prop.
Final Draft No. 1, 2017), noting that New York courts appeared to have considered and rejected the
policy considerations discussed in § 19. Catlin Specialty Insurance Co. v. J.J. White, Inc., 309 F.Supp.3d
345,362, 363.


COPYRIGHT 02019 By THE AMERICAN LAW INSTITUTE
              All rights reserved
        Printed in the United States of America


For earlier citations, see the Appendices, Supplements, or Pocket Parts, if any, that correspond to the subject matter under examination.


ALI