A New Jersey appellate court affirmed a decision that an insured's assent by silence was sufficient to consent to an insurer's choice of counsel in a lawsuit. The case is United Specialty Ins. Co. v. Century Waste Servs., LLC, 2023 N.J. Super. Unpub. LEXIS 2097 (N.J. Super. Ct. App. Div. 2023). Please note that this decision is unpublished and therefore has limited precedential value. 

A manager for Century Waste Services (Century) allowed an employee to use a car owned by the manager's mother to go on a work-related errand. The employee was involved in an auto accident. The passengers of the other vehicle sued Century, the employee, and the borrowed vehicle's owner for injuries suffered in the collision. 

Century was insured through a policy issued by United Specialty Insurance Company (USI). After the wreck, a claims administrator told Century that USI had hired counsel to defend Century in the underlying suit. If Century wished to hire their own counsel, it would be at their expense. Almost two years later, USI sent another letter to Century stating that USI would continue defending Century subject to a reservation of rights. The letter also stated that, unless USI heard otherwise from Century, USI would assume Century consented to using the counsel hired by USI. Century never objected.