How Far Does Insurers' Duty To Defend Go?

Law360, New York (September 10, 2010, 1:41 PM EDT) -- In a much-anticipated decision, the Pennsylvania Supreme Court held in American and Foreign Ins. Co. v. Jerry’s Sport Center Inc., __ A.2d ___, 2010 WL 3222404 (Pa. Aug. 17, 2010), that, absent specific contractual language to the contrary, an insurance company does not have the right to obtain reimbursement of defense costs from its policyholder, even if that claim is ultimately found in a declaratory judgment action not to be covered by the insurance policy.

The duty to defend arises whenever there is a potentially covered...
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