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Insurance

Sep. 19, 2007

Refusing Defense

Insurers who refuse to defend a third-party lawsuit are putting their pocketbooks on the line, as illustrated by three recent decisions.

Rex Heeseman

JAMS

555 W 5th St Fl 32
Los Angeles , CA 90013-1055

Phone: (213) 253-9772

Fax: (213) 620-0100

Email: rheeseman@jamsdar.com

Stanford Univ Law School

Rex Heeseman retired from the Los Angeles Count Superior Court bench in 2014. He is at JAMS, Los Angeles. Besides speaking at various MCLE programs, he co-authors The Rutter Group's practice guide on "Insurance Litigation." From 2002 to 2015, he was an adjunct professor at Loyola Law School.

FOCUS COLUMN

By Rex Heeseman

      Three recent decisions illustrate the potential bad-faith consequences (such as a sizable jury award) of a refusal to defend a third-party lawsuit. Conversely, Hamilton v. Maryland Cas. Co., 27 Cal.4th 718 (2002), highlights the advantages of defending, as well as putting the dangers of refusing to defend in sharper relief.

      Abandonment's Dangers ...

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