In Market Lofts Community Association v. National Union Fire Insurance Company of Pittsburgh, PA, the court addressed a critical issue in D&O insurance defense coverage—whether an insurer is obligated to provide a defense despite a misleading pleading. The court denied National Union Fire Insurance Co.’s Motion to Dismiss and granted the Association’s Motion for Partial Summary Judgment, ruling that it was entitled to defense coverage for a cross-complaint brought by a developer.

The issue of New York no recoupment in insurance law has remained largely unsettled—until now. In General Star Indemnity Co. v. Driven Sports, Inc., No. 14-CV-3579 (JFB)(ARL), 2015 U.S. Dist. LEXIS 7966 (E.D.N.Y. Jan. 23, 2015), the court examined whether an insurer could recoup fees expended in defending, settling, or indemnifying an insured when no potential coverage existed, despite failing to reserve its right to seek recoupment. The decision reinforced the trend in several state Supreme Court rulings, including those in Illinois, Texas, Pennsylvania, and Washington, rejecting an insurer’s attempt to recoup such costs.

In 360Heros, Inc. v. Mainstreet America Assurance Co., the court addressed a significant issue in legal fee insurance coverage—whether an insurer is obligated to cover attorneys’ fees incurred after funding a settlement. The panel reversed what it deemed an “erroneous” ruling and determined that 360Heros, Inc. was entitled to recover legal fees for continued litigation necessary to resolve business issues beyond the initial settlement.