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Perspective

Sep. 22, 2011

The common fund theory: insurer liability for compulsory cross actions

How the common fund theory can win back money for your client. By Murray M. Sinclair and Ryan C. McKim of Murray M. Sinclair & Associates


By Murray M. Sinclair and Ryan C. McKim


Your client recently discovered that an employee was embezzling money from the company. After firing the employee and filing a police report, the dishonest employee has the moxie to file a bogus lawsuit against the client, alleging various labor code violations, none of which trigger a defense obligation under the client's liability policy. You recommend that the client mount a vigorous defense and tender a claim under ...

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