Insurance Coverage Litigation Newsletter - Summer 2019

Ambiguities in Policy Language Results in Coverage for Attorney’s Fees Awards Against Insureds

A recent federal court ruling is another cautionary tale for insurers who write ambiguous provisions into their commercial general liability policy language. [Wallace v. Nautilus Ins. Co., No. 18-CV-747-LM, 2019 WL 3302172, 2019 U.S. Dist. LEXIS 122219 (D.N.H. July 23, 2019)] In Wallace, the homeowner plaintiffs hired a roofer (McPhail) to replace the roofs on their houses. After McPhail finished construction, plaintiffs noticed that their roofs were leaking, and they replaced the roofs. Thereafter, Plaintiffs commenced an arbitration proceeding against McPhail.