Insurance Claim – Duty to Defend

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WI Court of Appeals – District I

Case Name: Johnson Controls, Inc. et al. Central National Insurance Company of Omaha, et al.

Case No.: 2014AP2050

Officials: Stark, P.J., Seidl and Lundsten, JJ.

Focus: Insurance Claim – Duty to Defend

Central National Insurance Company of Omaha and Westchester Fire Insurance Company (collectively “Central National”) appeal a summary judgment determining that Central National breached its duty to defend Johnson Controls, Inc. (Johnson Controls) against potential liabilities for environmental contamination under multiple excess insurance policies. Johnson Controls cross-appeals from the circuit court’s denial of additional attorney fees, prejudgment interest requests, and the rate at which postverdict interest was to be calculated. Based on the duty to defend language of the insurance policies at issue, which Johnson Controls concedes provides a duty to defend only if an occurrence is covered under the excess insurance policies but not covered under the underlying insurances, we conclude Central National owed no duty to defend Johnson Controls. We therefore reverse and remand with directions to enter judgment for Central National. The cross-appeal is dismissed as moot.

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Attorney Derek A. Hawkins is the managing partner at Hawkins Law Offices LLC, where he heads up the firm’s startup law practice. He specializes in business formation, corporate governance, intellectual property protection, private equity and venture capital funding and mergers & acquisitions. Check out the website at www.hawkins-lawoffices.com or contact them at 262-737-8825.