Law360, New York (August 9, 2013, 12:50 PM EDT) -- The U.S. District Court for the Northern District of Ohio's recent opinion in IMG Worldwide Inc., et al. v. Westchester Fire Ins. Co., Case No. 1:11 CV 1594 (N.D. Ohio May 13, 2013) has left policyholders with a Hobson's choice when it comes to seeking coverage for defense costs from a primary insurer for claims that may penetrate the excess policy above. The court held that when an excess policy reserves subrogation rights, and the policyholder gives its primary insurer a full release in return for a partial defense costs reimbursement, the excess carrier will have no obligation to pay the insured's unreimbursed defense costs because its subrogation rights were prejudiced by the settlement....
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