Massachusetts High Court to Decide if Insurers Can Recoup Defense Costs

February 7, 2018
Craig O'Neill - Complex Insurance Coverage Reporter

The Massachusetts Supreme Judicial Court (SJC) is set to hear argument on February 6 in a case that will decide whether insurers can recoup defense costs if it is later determined that they owed no duty to defend an underlying claim. At issue in Holyoke Mut. Ins. Co. v. Vibram USA, Inc., No SJC-12401, is a trial court ruling that a pair of insurers were not entitled to recover amounts they paid under a reservation of rights for Vibram’s defense in a trademark suit that was later found not to allege a covered claim for “advertising injury.” The policies at issue did not expressly provide for reimbursement of defense costs.

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