4th Circ. Ruling Exposes Insurers To Expanded Damages

Law360, New York (February 5, 2014, 9:44 PM EST) -- The Fourth Circuit held Monday that policyholders can recover damages for the “aggravation and inconvenience” they suffer when liability insurers violate a duty to defend, an atypical ruling that will embolden policyholder attorneys to push for harsher penalties following a breach of contract.

The decision gives Robert Graham, the former executive director of Council on Aging Inc. and a second nonprofit, the chance to go after National Union Fire Insurance Co. of Pittsburgh, Pa., for additional damages stemming from the insurer's refusal to defend Graham against malfeasance claims...
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