HNRK Coverage Corner

On April 8, 2024, the Sixth Circuit issued an opinion in Great Am. Fidelity Ins. Co. v. Stout Risius Ross, Inc., Case No. 23-1167/1195, holding that, under Michigan law, an insurer was entitled to seek reimbursement of defense costs upon a finding it had no duty to defend. 

Although the policy “did not expressly authorize such reimbursement,” the Sixth Circuit, making an “Erie guess” as to how the Michigan Supreme Court would resolve the issue, found that where “an insurer explicitly reserves its right to reimbursement and notifies the insured of the specific possibility of ...