Insurance Coverage

Insurance Coverage

Scottsdale paid the full amount of the settlement in the underlying litigation and then filed suit its insured, in Federal court, seeking reimbursement of the settlement, claiming that there was actually no coverage. We filed a Counterclaim for bad faith primarily seeking the right to obtain our fees, pursuant to Brandt v. Superior Court. Scottsdale argued that Brandt only applies where the insurance company refuses to pay, not where the insurer pays but then sues for reimbursement. Judge Phillips denied the insurer’s Motion to Dismiss, significantly changing the risk/reward scenario for Scottsdale.