U.S. District Court Denies Insurer Right to Control Defense and Remediation: Insurer Hired Defense Counsel Cannot Serve Two Masters in Indiana

Written by David O’Neill, JD, Director of Investigations, PolicyFind

Valley Forge Insurance Company sued scrap yard operator, Hartford Iron & Metal in the U.S. District Court for the Northern District of Indiana, seeking a declaration that it had both the right to control the defense and remediation of the Hartford environmental contamination site.  A settlement agreement entered into by the parties, a U.S. District Court ruled, did not override Indiana case law that defines a “conflict of interest” in the environmental coverage context.

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