Blended Rates and Prejudgment Interest Recoverable

Norwalk Distributors, Inc. v. One Beacon Ins. Co., No. SA CV 04-533 DOC (U.S.D.C., C.D. Cal. July 13, 2004) (Denying OneBeacon's request for a continuance under Fed. R. Civ. P. 56(f), the court found that an endorsement which only required assertion against the insured of a copyright infringement action triggered a defense. Prejudgment interest was awarded and 100% of Gauntlett & Associates' attorneys' fees as defense counsel at the average blended rate of $276.48 per hour. As a breaching insurer, OneBeacon could not impose its purported $185 per hour rate on its abandoned insured. A defensive counterclaim was also found to be within OneBeacon's obligation because an insurer that has breached its duty to defend may not "dispute [reasonable] litigation strategies undertaken by the defense." Sentex Sys. v. Hartford Accident and Indemnity Co., 882 F. Supp. 930, 946 (C.D. Cal. 1995), aff'd, 93 F.3d 578 (9th Cir. (Cal.) 1996).)