Tuesday, September 10, 2013

Reargument Granted in Insurance Coverage Case K2 Inv. Group, LLC

The Court of Appeals has granted reargument in the recently decided insurance coverage case K2 Investment Group, LLC v. American Guarantee & Liability Co.  In June, the Court of Appeals concluded that when a liability insurer has breached its duty to defend its insured, the insurer may not later rely on policy exclusions to escape its duty to indemnify the insured for a judgment against him. 
The Court does not give reasons for granting reargument but one commentator noted that the motion for reargument in K2 asked the Court to take another look at K2 and the Courts prior decision in Servidone Construction Corp. v. Security Insurance Co. of HartfordServidone, like K2, involved an insurer that breached its duty to defend, a subsequent demand to indemnify, and an argument that a claim was not within a policy's coverage.

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