Hindsight Isn’t 20/20 When It Comes To An Insurer’s Duty To Defend In California
Authors
You are a California policyholder and have been sued in a lawsuit. Your insurer denies coverage, claiming that it has no duty to defend the lawsuit. After the lawsuit concludes, you file suit against your insurer, contending that the insurer breached its duty to defend and engaged in bad faith. During discovery in the bad faith and coverage lawsuit, your insurer seeks broad-ranging discovery about what transpired in the underlying lawsuit after the insurer denied coverage with an eye toward finding evidence to bolster its denial of coverage. Is this a permissible practice?
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