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Tuesday, August 31, 2010

Ind. Decisions - A second Indiana decision today from the 7th Circuit

In Hayes Lemmerz Int'l. v. ACE Amercian Ins. (ND Ind., Simon), a 9-page opinion, Judge Posner writes:

This appeal from a judgment dismissing a diversity suit by a disappointed insured against its insurance company presents issues of Indiana insurance law. * * *

Because HLI was, by virtue of Indiana law, a joint employer, ACE was contractually obligated to reimburse the reasonable expense of HLI’s getting itself dismissed from the tort suit. But HLI is not claiming that ACE has refused to pay that modest amount. It is complaining that ACE breached its duty to defend by failing to advise HLI that HLI’s law firm was not defending the suit properly. ACE had no duty to provide its insured’s lawyers with legal advice. AFFIRMED. 8-31-

Posted by Marcia Oddi on August 31, 2010 01:20 PM
Posted to Ind. (7th Cir.) Decisions