American policyholders liquidating trust
The plaintiff, K2 Investment Group, soon discovered the mortgages were not recorded, which prejudiced its rights as a creditor when the corporation defaulted and entered bankruptcy. Among the claims asserted by K2 was a cause of action for legal malpractice against one of the principals, an attorney, who had also been responsible for drafting and recording K2's mortgages. 1986).) The court determined that American Southern had a duty to defend its insured, and awarded the contractor the full amount of its settlement with the employee as well as attorney's fees and costs. immediately caught the attention of the insurance industry.The attorney's legal malpractice carrier, American Guarantee, disclaimed its duty to defend on the grounds that the principal was acting as a businessman, not an attorney, when he neglected to record the mortgages. Connecticut's implementation of the estoppel rule, termed the "Rule of Messengers," arises from the Connecticut Supreme Court's The defendant, after breaking the contract by its unqualified refusal to defend, should not thereafter be permitted to seek the protection of that contract in avoidance of its indemnity provisions. American Guarantee moved for reargument, while the Complex Insurance Claims Litigation Association and the American Insurance Association filed a brief as in favor of the motion.K2 obtained a default judgment and an assignment of rights from the principal, and it then sued American Guarantee for breach of contract. " If company must indemnify its insured for the resulting judgment, even if policy exclusions would otherwise have negated the duty to indemnify. Rather, the insurer has two options: (1) defend the suit under a reservation of rights or (2) seek a declaratory judgment that there is no coverage. A subcontractor's employee sued the general contractor and subcontractor for negligence after falling and injuring himself. The Court of Appeals granted the motion without comment and scheduled reargument for January of 2014.
Clients include Fortune 1000 companies, small and medium-sized businesses, governmental entities, and nonprofits as well as personal estates. As technological innovation continues to unfold at a torrid clip, the challenges of protecting against theft and fraud have never been greater.AIG has filed a notice of appeal in the California Court of Appeal, the first step in AIG's planned challenge to Judge Cahill's decision.AIG also will file objections to Golden Eagle's rehabilitation plan at a scheduled July 8 hearing, according to Roxani Gillespie, AIG's outside counsel with Buchalter, Nemer, Fields & Younger in San Francisco. AIG, which in April had won Golden Eagle in a sealed bidding contest organized by the California Insurance Department, lost to Liberty Mutual in a May 30 order by Superior Court Judge William Cahill.It was his decision," he said during a telephone press conference that followed last week's announcement.
AIG's bid for Golden Eagle was challenged in May by Liberty Mutual, which presented a sweetened offer to the court overseeing the insurer's rehabilitation.