No Right to Pre-Tender Defense Costs
Read the full article at https://lnkd.in/guF_P2p4 and at https://zalma.com/blog.
HDI Global Insurance Company (“HDI”) sought an order eliminating its obligation to pay pre-tender defense costs of its insured. The USDC resolved the dispute in favor of the insurer.
BACKGROUND
HDI issued a commercial general liability policy (“the HDI Policy” or “the Policy”) to DES, providing coverage between November 1, 2016 and November 1, 2017. Nucor was an additional insured under the HDI Policy.
On May 10, 2018, Bob Dale Comeaux II (“Comeaux”), a DES employee, filed a civil action (“the Comeaux litigation”) alleging that he was exposed to hydrogen sulfide gas at Nucor’s plant facility on May 15, 2017.
On May 10, 2019, one year after Comeaux filed suit, attorneys representing Nucor tendered Nucor’s defense and indemnification to DES. On January 21, 2020,
LAW AND ANALYSIS
HDI recognizes that it is required to pay Nucor’s post-tender defense costs because Nucor is an additional insured under the HDI Policy. HDI argued that it is not required to pay Nucor’s pre-tender defense costs.
Contractual Liability Coverage - Nucor’s Defense Costs
HDI disputes that the contractual liability provision requires HDI to reimburse DES for its settlement of Nucor’s defense costs in the Comeaux action. In support, HDI noted that the contractual liability provision states, in relevant part, that the Policy extends to “reasonable attorneys’ fees and necessary litigation expenses incurred by or for a party other than an insured.” HDI submits that, because Nucor is an insured under the policy, its attorney’s fees and costs in the Comeaux litigation are expressly exempted from contractual liability coverage.
Under the express language of the contractual liability provision, HDI is not required to reimburse DES for Nucor’s pre- or post-tender defense costs in the Comeaux litigation.
DES’s claims-as to DES’s reimbursement of Nucor’s pre-tender defense costs arising in the Comeaux action, Nucor’s litigation costs in pursuing coverage under the ICA and the HDI Policy, and penalties pursuant to La. R.S. 22:1892 and 22:1793-are dismissed with prejudice.
ZALMA OPINION
If an insured wishes to recover from a liability insurance policy it is essential that they give notice to the insurer of a need for a defense. In this case the insured and the additional insured waited before asking for a defense. They were entitled to, and actually received the defense asked for, from the moment the insured asked for defense. They have no right for the costs they incurred for defense before giving notice to the insurer.
(c) 2022 Barry Zalma & ClaimSchool, Inc.
Barry Zalma, Esq., CFE, is available at http://www.zalma.com and [email protected].
Subscribe to Zalma on Insurance at locals.com https://lnkd.in/gn5WAi6C.
Subscribe to Excellence in Claims Handling at https://lnkd.in/gNm9EWKJ.
-
- EXPLORE
-
-
-
-
-
-
-
-
Search
Categories
- Art
- Causes
- Crafts
- Crime
- Dance
- Drinks
- Film
- Finance
- Fitness
- Food
- Games
- Gardening
- Health
- Home
- Literature
- Music
- Networking
- Paranormal
- Other
- Politics
- History
- Party
- Science
- Religion
- Shopping
- Sports
- SyFy
- Politically Incorrect
- Philosophy
- Theater
- Technology
- Wellness
Read More
Democrats Are Responsible For the Jan 6th Riot As Well, and it's Time We Mention it.
Apparently, Pelosi doesn't want any republicans on her Jan 6th investigative committee, so the...
Truck v. Train - Train Wins
Only Truck Driver Responsible for AccidentRead the full article at https://lnkd.in/gjtHPfpq and...
Was the 2020 Wuhan Coronavirus an Engineered Biological Attack on China by America for Geopolitical Advantage?
Was the 2020 Wuhan Coronavirus an Engineered Biological Attack on China by America for...
A Video Explaining the Standard Mortgage Clause in a Property Insurance Policy
The Mortgage Clause to a Property Insurance Policy
Read the full article at...
Coronavirus treatment which apparently can save some 98 % of COVID patients!!! PLEASE CHECK AND DISTRIBUTE THIS INFORMATION!!!
Coronavirus treatment which apparently can save some 98 % of COVID patients!!! PLEASE CHECK AND...