The Second Department, Appellate Division, for the Supreme Court of New York, recently held in a matter of first impression, that an insurance company with a duty to defend may not recover defense costs after a determination that no duty to indemnify or further defend exists—even though the insurer expressly reserved its right to recoup such defense costs—unless the policy explicitly provides for such recovery. See American W. Home Ins. Co. v. Gjonaj Realty & Mgt. Co., 2018-03435, 2020 WL 7767944 (2d Dept., Dec. 30, 2020).
Continue Reading New York Court Rules Duty to Defend Policies Must Explicitly Provide for Recoupment of Defense Costs
Erica Kerstein
Erica Kerstein focuses her practice on complex insurance matters, with particular emphasis in the areas of financial lines, bad faith, commercial general liability and first-party property. Her extensive experience includes matters involving environmental, professional liability, general liability, and other claims, both counseling and representing clients in high-profile matters. Read Erica’s rc.com bio.
Contact:Read more about Erica Kerstein