Seventh Circuit Rules Policyholder not Entitled to Coverage for Counsel Chosen Without Insurer Approval

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National Cas. Co. v. Forge Industrial Staffing Inc.

(7th Cir. [ Ill.] June 3, 2009)

A policyholder declined to accept insurer-appointed counsel to defend it against claims before the Equal Opportunity Employment Commission because it was fearful that the insurer would control the defense in such a way that would preclude coverage.  The court held that the underlying claims were not mutually exclusive, one of which would be covered and one of which would not be covered.  As such, appointment of conflict counsel was not required under Illinois law.

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By Bryan D. Richmond

https://www.goldbergsegalla.com/attorneys/Richmond.html