7th Circ. 'Reasonable Costs' Ruling Is A Win For Policyholders

By Ann Kramer, Adrienne Kitchen and Andrew Barrios (September 9, 2022, 5:57 PM EDT) -- Last month, in USA Gymnastics v. Liberty Insurance Underwriters Inc.,[1] the U.S. Court of Appeals for the Seventh Circuit affirmed and expanded upon its so-called Taco Bell rule, which states that where an insurer breaches its duty to defend, the policyholder is entitled to a presumption that its defense costs are reasonable and necessary....

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