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Insurance

Dec. 9, 2009

Stay Orders, a Frustration to Insurers

Alan Jampol of Jampol Zimet Skane & Wilcox examines stays of declaratory relief actions in the context of insurance coverage.

By Alan Jampol

A frustrating experience for an insurer is to be told by a court that the insurer may not pursue its request for a court declaration that its policy does not cover the insured's claim or does not obligate the insurer to provide a costly defense to the insured. The stay order will be lifted once the underlying claim is resolved, but by then, the insurer will have incurred significant defense costs. While courts appear ready to issue stay orders in declarator...

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