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Montana: Insurer Breached Duty to Defend Even if Policyholder Was Defended by Another Insurer

The Montana Supreme Court issued a decision Thanksgiving week clarifying that when a policyholder is owed a defense by multiple general liability insurers, all of those insurers must participate in the defense, or risk severe penalties for breaching the duty to defend.  In J&C Moodie Properties LLC v. Scottsdale Insurance Company the court held that Scottsdale Insurance … Continue Reading

Montana Case on Late Notice Calls Into Doubt Technical Coverage Defenses

In a new decision the Montana Supreme Court has confirmed that in order to avoid its coverage obligations based on a technical defense such as late notice, a liability insurer must show that it suffered “prejudice.”  The case is a good illustration of courts’ general skepticism toward “technical” coverage defenses asserted by insurers, but also of how … Continue Reading

Montana Decision Has Lessons for Drafting Indemnity Provisions

A new decision from the District of Montana, WBI Energy Transmission v. Colony Insurance, illustrates the dangers of a vaguely-worded additional insured requirement in a contract.  In WBI a pipeline worker employed by a mid-tier contractor, “Pro Pipe” was injured; after collecting from worker’s comp, he sued both the owner (WBI) and the sub-contractor.  The owner … Continue Reading
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