Hinshaw's Larry Golub Discusses Key Wisconsin Supreme Court Insurance Carrier Ruling with Law360

Hinshaw attorney Larry Golub discussed with Jeff Sistrunk of Law360 the recent Wisconsin Supreme Court decision Steadfast Insurance Co. v. Greenwich Insurance Co. One issue in the case was whether an insurer that breaches its duty to defend is automatically liable for all the defense costs paid by a nonbreaching insurer.

The Supreme Court declined to impose full costs on the breaching insurer, finding instead that each carrier is liable for a pro rata share of the costs based on respective policy limits. Golub said allocation by policy limits has solid support in case law across the country, noting that "under the theory of the majority where … both insurers had an obligation to defend, the fact that one breached shouldn't be a windfall for the one that defended."

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"4 Key Insurance Rulings You May Have Missed" was published by Law360, April 12, 2019.