Insurer needs notice of claim to defend it

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An insurer can't defend a claim of which it has no knowledge and its duty to defend doesn't begin until it receives basic notice information to allow it to defend a claim, ruled the Indiana Supreme Court. The high court affirmed today summary judgment in favor of an insurer on the question of when its duty to defend began in an environmental claim filed by a policy holder because the duty to defend didn't begin until the policy holder complied with the policy's notice requirement.

The question in Dreaded Inc. v. St. Paul Guardian Insurance Co., et al., No. 49S02-0805-CV-244, is whether St. Paul Guardian Insurance was liable for environmental damage claims against Dreaded Inc. that it was unaware of for more than three years. Dreaded received notice from the Indiana Department of Environmental Management requiring it to investigate contamination at a former business site. Dreaded notified St. Paul of the IDEM claim 3 ½ years later and asked St. Paul to take up its defense and reimburse the company for defense costs incurred up to that point. St. Paul agreed to defend Dreaded beginning at the point it received notice, but not for the 3 ½ years prior to receiving notice. Dreaded filed suit seeking declaratory relief establishing St. Paul's duty to fully defend and indemnify against the IDEM action and damages from the breach of contract of St. Paul's duty to defend. St. Paul countered it required prompt notice of damage claims and it wasn't liable for payments made without its consent. The Indiana Court of Appeals reversed summary judgment in favor of St. Paul.

Dreaded argued on appeal it's entitled to recover its pre-notice defense costs unless St. Paul can prove it was prejudiced by the company's late notice and St. Paul failed to present evidence showing actual prejudice. However, the facts of this case will result in the same outcome regardless of whether St. Paul has to show it was prejudiced, wrote Justice Brent Dickson. Dreaded's claim for damages is predicated solely on its contention St. Paul breached its duty to defend them against a claim or suit for injury or damage covered by their policy.

But an insurer can't defend a claim if it doesn't know about, and until it receives the basic information needed to allow it to defend a claim, the insurer can't be held accountable for breaching this duty, wrote the justice. St. Paul's duty to defend didn't arise until Dreaded complied with the policy's notice requirement, so the insurer is entitled to summary judgment as a matter of law.


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  1. If a class action suit or other manner of retribution is possible, count me in. I have email and voicemail from the man. He colluded with opposing counsel, I am certain. My case was damaged so severely it nearly lost me everything and I am still paying dearly.

  2. There's probably a lot of blame that can be cast around for Indiana Tech's abysmal bar passage rate this last February. The folks who decided that Indiana, a state with roughly 16,000 to 18,000 attorneys, needs a fifth law school need to question the motives that drove their support of this project. Others, who have been "strong supporters" of the law school, should likewise ask themselves why they believe this institution should be supported. Is it because it fills some real need in the state? Or is it, instead, nothing more than a resume builder for those who teach there part-time? And others who make excuses for the students' poor performance, especially those who offer nothing more than conspiracy theories to back up their claims--who are they helping? What evidence do they have to support their posturing? Ultimately, though, like most everything in life, whether one succeeds or fails is entirely within one's own hands. At least one student from Indiana Tech proved this when he/she took and passed the February bar. A second Indiana Tech student proved this when they took the bar in another state and passed. As for the remaining 9 who took the bar and didn't pass (apparently, one of the students successfully appealed his/her original score), it's now up to them (and nobody else) to ensure that they pass on their second attempt. These folks should feel no shame; many currently successful practicing attorneys failed the bar exam on their first try. These same attorneys picked themselves up, dusted themselves off, and got back to the rigorous study needed to ensure they would pass on their second go 'round. This is what the Indiana Tech students who didn't pass the first time need to do. Of course, none of this answers such questions as whether Indiana Tech should be accredited by the ABA, whether the school should keep its doors open, or, most importantly, whether it should have even opened its doors in the first place. Those who promoted the idea of a fifth law school in Indiana need to do a lot of soul-searching regarding their decisions. These same people should never be allowed, again, to have a say about the future of legal education in this state or anywhere else. Indiana already has four law schools. That's probably one more than it really needs. But it's more than enough.

  3. This man Steve Hubbard goes on any online post or forum he can find and tries to push his company. He said court reporters would be obsolete a few years ago, yet here we are. How does he have time to search out every single post about court reporters and even spy in private court reporting forums if his company is so successful???? Dude, get a life. And back to what this post was about, I agree that some national firms cause a huge problem.

  4. rensselaer imdiana is doing same thing to children from the judge to attorney and dfs staff they need to be investigated as well

  5. Sex offenders are victims twice, once when they are molested as kids, and again when they repeat the behavior, you never see money spent on helping them do you. That's why this circle continues