Shoshone First Bank v. Pacific Employers Insurance Co.

How courts have described this case

Verbatim parenthetical descriptions written by other courts when citing this decision. Ranked by citation-network relevance.

• holding that the \insurer is not permitted to unilaterally modify and change policy coverage\ by seeking reimbursement
• holding that “reservation of rights letter ‘does not relieve the insurer of the costs incurred in defending its insured where the insurer was obligated, in the first instance, to provide such a defense’ ”
• rejecting the ability of an insurer to modify an existing contract through a reservation of rights letter
• opting to follow minority rule that insurer cannot recover defense costs because “insurer is not permitted to unilaterally modify and change policy coverage”
• allowing insurers to defend only covered claims \would lead to judicial inefficiency and a failure to resolve actions timely and consistently\
• disallowing allocation of defense costs where the policy did not provide for recoupment

Source: CourtListener parenthetical corpus (CC0).