9th Circ. Lets Northwest Defend Against Insurer Suit

Law360, New York (October 29, 2009, 6:19 PM EDT) -- Reversing a lower court decision, a federal appeals court has ruled that Northwest Airlines Inc. should be allowed to defend its interests in a dispute over Westchester Fire Insurance Co.'s duty to indemnify an elusive policyholder in an underlying suit brought by the airline.

The U.S. Court of Appeals for the Ninth Circuit on Wednesday vacated the decision in favor of Westchester, holding that a default ruling against a policyholder should not prevent Northwest, as an injured third party, from proceeding on its own behalf....
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