Pa. Appeals Court Sets New Standard For Coverage Feuds

Law360, Philadelphia (July 10, 2013, 5:37 PM EDT) -- A Pennsylvania appeals court on Wednesday set a new standard for solving insurance disputes related to an insurer defending a claim while retaining its rights to deny coverage, vacating a $95 million judgment against American Nuclear Insurers in a coverage suit over radiation injury claims.

The three-judge Superior Court panel found that the court had erred in focusing on whether The Babcock & Wilcox Co.’s decision to settle claims that radiation from their nuclear facilities gave people cancer and damaged property over ANI’s objections was “fair...
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