Pa. Superior Court Corrects A Disturbing Coverage Trend
Law360, New York (January 2, 2014, 6:04 PM EST) -- On Dec. 3, 2013, the Pennsylvania Superior Court issued its much anticipated opinion in Indalex Inc. v. National Union Fire Insurance Co. of Pittsburgh, Pa., holding that insurance coverage is available to product manufacturers for negligence claims asserting damages to third parties. The court made clear that the Pennsylvania Supreme Court's coverage-limiting holding in Kvaerner is confined to cases where the underlying claims are for breach of contract and breach of warranty and the only damages are to the insured's product. The court specifically rejected application of the gist of action doctrine to the duty to defend analysis, affirming long-standing Pennsylvania law that, if even one tort claim is potentially covered, the insurance carrier's duty to defend is triggered....
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