Wisconsin Federal District Court Chides Insurers for Inaction, Deems Insurers Estopped from Asserting Their Right To Defend

In Haley v. Kolbe & Kolbe Millwork Co., Inc., No. 14-cv-99-bbc, 2015 U.S. Dist. LEXIS 42584 (W.D. Wis. Apr. 1, 2015) the U.S. District Court for the Western District of Wisconsin granted summary judgment in favor of the insured, Kolbe & Kolbe Millwork Co. (Kolbe), holding that Fireman’s Fund Insurance Company and United States Fire Insurance Company (collectively the “insurers”) were estopped from having the right to select counsel to represent Kolbe in a class action lawsuit alleging the sale of defective windows.

The …

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11th Circuit Upholds Adequacy of Insurer’s Reservation of Rights and Rejects Estoppel Defense

In Wellons, Inc. v. Lexington Insurance Co. (May 16, 2014), the Eleventh Circuit rejected the insured’s argument that Lexington assumed and conducted its defense of the underlying lawsuit without adequately reserving its rights to disclaim coverage, affirming the district court’s finding that Lexington was not estopped from asserting its coverage defenses under the subject policies.

The Eleventh Circuit focused on interpreting the requirements for reservation of rights letters set forth by the Georgia Supreme Court in World Harvest Church, Inc. v. GuideOne Mutual Insurance Co.

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