Credit: NATHAPHAT NAMPIX/Adobe Stock 'If We Do Not Hear From You' Is Adequate Reservation of Rights Language, Says Appellate Division
"In the matter before us, Century does not dispute the borrowed vehicle does not qualify as a 'covered auto' under the USI policy," the per curiam opinion said. "Its coverage/indemnification argument rests on the principle of estoppel, which in turn hinges on whether Century was properly informed of its right to choose either to consent to legal representation by the lawyer provided by USI, or to retain its own attorney at its own expense."
November 21, 2023 at 11:14 AM
4 minute read
The Appellate Division sided with an insurer, finding that its reservation of rights letter adequately informed its customer of its right to reject the attorney the insurer selected.
The case, United Specialty Insurance v. Century Waste Services, was filed in Union County Superior Court. In March 2017, a Century Waste Services employee was operating a vehicle owned by a company manager's mother, on company business, when he had an accident. Century appealed the trial court's grant of summary judgment in favor of United Specialty Insurance, finding that the insurer is not required to indemnify Century, according to the opinion.
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