“Insurance Cases to Watch in 2020”
Courts will have their hands full with contentious insurance issues this year, with the Florida Supreme Court poised to decide whether insurers can directly sue their policyholders’ defense counsel for malpractice and California’s high court set to rule on the prerequisites for policyholders to tap into valuable excess policies.
State Farm Lloyds v. Janet Richards
The Texas Supreme Court will have the chance to decide whether there is any exception to the state’s prevailing rule for analyzing insurers’ duty to defend as it mulls a coverage dispute between State Farm Lloyds and a couple facing litigation over an ATV accident that killed their grandson.
…Thompson & Knight LLP associate John Atkins, who counsels policyholders, said a decision adopting State Farm’s position could considerably narrow the defense coverage afforded under policies with language similar to that in the Richards’.
“In that situation, it is conceivable that, the more info the insured shares with its insurer, the less likely the insurer will be to continue to cover the case. I don’t think that is a stable insurance relationship,” Atkins said.