Insured Who Defends Itself and Fails to Give Its Insurer Notice of Claim Cannot Later Recover Defense Costs
In this case, a nursing home was sued for wrongful death based upon asserted negligence. The nursing home decided to retain its own counsel and defend itself in the action. Not until almost two (2) years later did the nursing home notify its insurer about the wrongful death lawsuit. It then sought to be reimbursed for its defense costs.
On appeal, the Michigan Court of Appeals determined that the nursing home’s legal arguments were devoid of any legal merit. There was no question that the nursing home, as a condition precedent for coverage under the insurance policy, had an obligation to report the wrongful death lawsuit to the insurer, in writing, as soon practical. The Court of Appeals affirmed the trial court’s order awarding partial defense costs to the defendant insurer and further remanded the case to the Trial Court for entry of an order awarding all requested attorney fees.
Read entire case at: Maple Manor Rehab CTR., LLC v Evanston Ins. Co.
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