OCTOBER 2009 BAD FAITH CASES
PARTY DOES NOT STAND IN INSURER’S SHOES TO PROVIDE DEFENSE/INDEMNITY WHERE INSURER WILL NOT DO SO FOR ADDITIONAL INSURED (Philadelphia Federal)

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In Detwiler v. Valero Marketing and Supply Company, one party was to make the other an additional insured on a policy.  It did so, but the insurance carrier refused to provide a defense to the additional insured because the insured was not a named party.  The Court observed that the insurer’s alleged bad faith in not providing a defense or coverage did not obligate the insured to step into the insurer’s shoes.

Date of Decision:  October 22, 2009

Detwiler v. Valero Marketing and Supply Company, U.S. District Court, Eastern District of Pennsylvania, CIVIL ACTION NO. 08-3495, 2009 U.S. Dist. LEXIS 98214 (E.D.Pa. Oct. 22, 2009) (Fullam, J.)

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PARTY DOES NOT STAND IN INSURER’S SHOES TO PROVIDE DEFENSE/INDEMNITY WHERE INSURER WILL NOT DO SO FOR ADDITIONAL INSURED (Philadelphia Federal)”


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