Judge Shuts Down Insurer's Attempt to Recoup Millions Defending and Settling Case
U.S. District Judge Richard Story said American Family Insurance could not use its reservation of rights letter to seek repayment of hefty defense costs and an $11 million settlement from its insured defendant driver.
The Georgia federal judge overseeing a convoluted insurance wrangle that emerged after a car-wreck case settled for $11 million last year has turned down efforts by American Family Insurance to recoup the money it spent defending the underlying case and paying the settlement from its onetime insured.
Judge Richard Story of the U.S. District Court for the Northern District of Georgia ruled that AmFam’s decision to defend the case—which first resulted in a jury verdict of $30 million that was overturned on appeal—and pay the settlement means it cannot recover the costs for either.
This premium content is locked for
Insurance Coverage Law Center subscribers only.
Start a free trial to enjoy unlimited access to the single source of objective legal analysis, practical insights, and news for the insurance industry.
- Access the most current expert analysis and daily developments across jurisdictions
- Solve complex research issues with expert tools and intelligence
- Tap into insurance coverage expert guidance
Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.