OCTOBER 2009 BAD FAITH CASES PARTY DOES NOT STAND IN INSURER’S SHOES TO PROVIDE DEFENSE/INDEMNITY WHERE INSURER WILL NOT DO SO FOR ADDITIONAL INSURED (Philadelphia Federal)

In Detwiler v. Valero Marketing and Supply Company, one party was to make the other an additional insured on a policy.  It did so, but the insurance carrier refused to provide a defense, as the insured was not a named party, to the additional insured.  The Court observed that the insurer’s alleged bad faith in not providing a defense or coverage did not obligate the insured to step into the insurer’s shoes.

Date of Decision:  October 22, 2009

Detwiler v. Valero Marketing and Supply Company, U.S. District Court, Eastern District of Pennsylvania, CIVIL ACTION NO. 08-3495, 2009 U.S. Dist. LEXIS 98214 (E.D.Pa. Oct. 22, 2009) (Fullam, J.)