State Farm Off Hook For Atty Costs In Property Damage Row

Law360, New York (September 24, 2013, 1:32 PM EDT) -- A California appeals court ruled Monday that State Farm General Insurance Co. had no obligation to continue paying for an independent counsel chosen by the insured plaintiff in an underlying property damage suit once the insurer dropped its reservation of rights.

A unanimous panel backed a lower court's finding that State Farm did not breach its insurance contract with plaintiff Terry Ann Swanson when it refused to pay for legal fees incurred by her independent counsel following the withdrawal of its reservation of rights.

While insured...
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