By: Derek Hawkins//March 2, 2016//
WI Supreme Court
Case Name: Kenneth C. Burglar , Sr. V. Menards, Inc.
Case No.: 2013AP907
Focus: Insurance Coverage
Insurance provider breached duty to defend when it withdrew defense of Menards following settlement of case.
“Reversing the circuit court’s ruling, the court of appeals explained that the circuit court was “incorrect in holding that if the insurers paid the sum of $11,400, they owed no duty to defend.” Id. at 787. St. John’s explicitly held that “maximum potential liability” cannot be equated with “maximum policy limits.” Id. The St. John’s court explained that “[i]f an insurer owes any money at all under its insurance policy, it must defend, because Wisconsin is one of those states which requires an insurer to exhaust its total policy limits before it is freed from the duty to defend.” Id. Thus, even though Aetna and American tendered payment of their maximum potential liability of $11,400, they continued to have a duty to defend because they had not paid their full policy limits.”
ROGGENSACK, C.J., ZIEGLER, J., concur and dissent. (Opinion Filed)
GABLEMAN, R.G.BRADLEY, J.J., did notparticipate.