Insurance: “Supplementary Payments” Provision Encompassed Contractually-Based Attorney’s Fees To Settling Party In Construction Defect Litigation

 

Pre-2007 CGL Policies Were At Issue.

 

    We have a year-end case for you insurance practitioners, especially coverage attorneys.

 

    In Navigators Specialty Ins. Co. v. Moorefield Construction, Inc., Case No. G050759 (4th Dist., Div. 3 Dec. 27, 2016) (published), our local Santa Ana court of appeal decided that a pre-2007 CGL “supplementary payments” provisions in an insurance contract encompassed contractually-based attorney’s fees which were allowable as “costs of suit” under the applicable insurance provision in the context of a settlement agreement. This decision, based on a footnote in it, only applies to pre-2007 CGL policies, given that post-2007 policies exclude these fees from the ambit of “supplementary payments” provisions. Justice Fybel authored the 3-0 published opinion.

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