Page 9 - Reservation of Rights - Special Edition

ARIZONA
Notice/Content
The reservation of rights letter must be timely. An insured is entitled to know early in the litigation process whether the insurer intends to honor its duty to defend in order for the insured to take steps to defend himself. Equity Gen. Ins. Co. v. C & A Realty Co., 148 Ariz. 515 (App. 1985).
The insurer’s reservation of rights must “fairly inform[ ] the insured of the insurer’s position.” Id. An insurer with a coverage defense must defend its insured under a properly communicated reservation of rights or it will lose its right to
later litigate coverage. United Services Automobile Assoc. v. Morris, 154 Ariz. 113, 116 (1987).
In addition, in Arizona, an unreasonable delay, even absent an express refusal to defend, in taking action after receiv- ing notice of a claim may constitute a breach of the duty to defend. Holt v. Utica Mut. Ins. Co., 157 Ariz. 477, 628-629 (1988). Further “An insured that is notified of its insurer’s res- ervation of rights is on notice of the conflict of interest and
is free, upon proper notice to the insurer, to act to protect its rights in the litigation with the claimant” Pueblo Santa Fe Townhomes Owner’s Ass’n v. Transcontinental Ins. Co., 218 Ariz. 13, 19 (Ct. App. 2008).
2018 ReseRvation of Rights - special edition
ARIZONA
Elardo, Bragg & Rossi, P.C. represents primarily businesses, insurers and professionals through efficient and cost-effective litigation across Arizona and Southern California. We are known for our extensive experience in the insurance industry and civil litigation. Our practice encompasses insurance defense work in all areas, including personal and commercial litigation, construction defect, premises liability, products liability, bad faith, dram shop, professional liability and agribusiness, as well as the defense of large self-insureds.
Our firm is dedicated to representing its clients with the utmost professionalism and competence. We understand that litigation management is the cooperative effort between the client and counsel to reach an agreement on a strategy to handle claims. We work with our clients as a team throughout the life of the file.
As a team member, Elardo, Bragg & Rossi, P.C. is dedicated to: being available to address issues in
a timely fashion and making every attempt to match our client’s sense of urgency; understanding our corporate clients as a company, and learning our clients’ business models and core values; and utilizing early case assessment and case management reporting processes so our clients are informed in a timely, routine, and efficient manner.
With decades of experience in litigation and business, Elardo, Bragg & Rossi, P.C. is the firm you should trust to provide you with personal, efficient, and balanced service.
Practice Areas: Insurance Coverage and Fraud; Legal Malpractice and Professional Liability; Bad
Faith and Extra-Contractual Liability; Product Liability; Automobile Liability Defense; Trucking and Transportation Industry Litigation; Commercial and Business Litigation; Construction Litigation; Alternative Dispute Resolution; Appeals; General Civil Litigation; Municipal Law; Wrongful Death and Personal Injury Litigation.
9