Newspaper article Pittsburgh Post-Gazette (Pittsburgh, PA)

Settle Lawsuits without Insurer Permission

Newspaper article Pittsburgh Post-Gazette (Pittsburgh, PA)

Settle Lawsuits without Insurer Permission

Article excerpt

A recent decision by the Pennsylvania Supreme Court gives businesses better insurance protection by allowing them to accept a settlement in a lawsuit without their insurer's permission, but without forfeiting their right to reimbursement from the insurer.

In the case, a group of people filed a class action lawsuit against a nuclear company, claiming that they had suffered bodily injury and property damage caused by emissions from the nearby nuclear plant. The nuclear company's insurer agreed to defend the company in court, but reserved the right to later deny the company's claim if it had to pay.

During the course of litigation, the company decided it wanted to settle with the plaintiffs, but the insurer refused to settle. …

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