Bad Faith Blog
April 8, 2015
Washington Insurer Gets to Depose Opposing Insurer’s Coverage Counsel
Summary: A Washington homeowners association filed suit against Derus Wakefield II, LLC for property damage at a condominium project. Derus tendered the suit to the association’s insurer, QBE, which denied the tender for defense at which point Everest agreed to defend under a reservation of rights. It then sued QBE arguing it had a duty to defend under Washington law. The matter was removed to federal court where the district court judge found the action was timely and further found that Everest could depose QBE’s coverage attorney in light of the bad faith claims.