Conn., SC Rulings Show Divide On Insurer-Vs.-Insurer Suits

Law360, New York (August 21, 2014, 6:45 PM EDT) -- The Connecticut Supreme Court and a South Carolina federal court grappling with a case of first impression recently took opposite sides on whether an insurer can ask a court to decide another insurer's duty to defend, underlining states' contrasting approaches to suits that provide insurers certainty on their own defense obligations.

In an opinion officially released Aug. 5, Connecticut's high court held that Travelers Casualty & Surety Co. of America had standing to launch a declaratory judgment suit to figure out whether fellow insurer The Netherlands Insurance Co. had a duty to defend a common policyholder.

Meanwhile, U.S. District Judge R....

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