January 9, 2017

Our client had a construction company with his brother. They split the business and there are currently two companies. The other brother filed an Ex Parte Motion for issuance of prejudgment garnishee against our client. We filed a claim under IL 00 17 11 85, understanding that there are coverage issues. The carrier questions whether property damage and/or an occurrence are alleged in the complaint. The insured has an attorney, and the carrier is saying they do not believe it is clear that a defense is owed at this time so is having insured attorney respond to the complaint. They are referring the matter to their coverage counsel and will reimburse if a defense is owed. No reservation of rights has been issued, and we believe a reservation of rights should be issued by the carrier and a defense owed to the insured from the time we tendered the claim to the carrier. Your opinion is appreciated.

 Hawaii Subscriber