Insurers Clash Over Policyholder's Defense Costs

Law360, New York (June 23, 2009, 12:00 AM EDT) -- After surviving a motion to dismiss the case, Republic-Vanguard Insurance Co. has amended allegations that Zurich American Insurance Co. and Northern Insurance Co. of New York shirked their obligations to pay Bluebonnet Waterproofing Inc.’s defense costs in litigation by disgruntled homeowners.

On Monday, Republic lodged a second amended complaint in the U.S. District Court for the Northern District of Texas, claiming Zurich and or NIC owe a duty to defend mutual insured Bluebonnet in a lawsuit alleging negligent construction of a condominium development.

Bluebonnet, a waterproofing...
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