{"id":903637,"date":"2024-11-27T13:30:54","date_gmt":"2024-11-27T20:30:54","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=903637"},"modified":"2024-11-27T13:30:54","modified_gmt":"2024-11-27T20:30:54","slug":"costs-to-respond-to-third-party-subpoena-do-not-constitute-a-claim","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/costs-to-respond-to-third-party-subpoena-do-not-constitute-a-claim\/","title":{"rendered":"Costs To Respond To Third-Party Subpoena Do Not Constitute A Claim"},"content":{"rendered":"\n<p>William F. Knauss, III | <a href=\"https:\/\/www.executivesummaryblog.com\/costs-to-respond-to-third-party-subpoena-do-not-constitute-a-claim\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Wiley<\/a><\/p>\n\n\n\n<p>The United States District Court for the District of Connecticut granted an insurer\u2019s motion for summary judgment on the grounds that neither a subpoena issued as part of multi-district litigation nor a chart listing the insured as a potential defendant in the litigation constituted a \u201c<a href=\"https:\/\/www.myconstructionexpert.com\/blog\/cgl-insurance-policy-timing-considerations-notice-of-construction-defect-claim\/\">Claim<\/a>.\u201d\u00a0<a href=\"https:\/\/www.executivesummaryblog.com\/assets\/htmldocuments\/Steadfast%20Ins.%20Co.%20v.%20Shambaugh%20-%20Order%204889-7384-9847%20v.1.pdf\" target=\"_blank\" rel=\"noreferrer noopener nofollow\"><em>Steadfast Ins. Co. v. Shambaugh &amp; Son, L.P.<\/em>, 2024 WL 4188459 (D. Conn. Sept. 13, 2024)<\/a>.<\/p>\n\n\n\n<p>Plaintiffs in a multi-district product liability litigation served a subpoena on the insured. The insured was not a defendant in the MDL, but it was identified as a distributor of the products at issue in the litigation and plaintiffs had provided a chart to the MDL court listing the insured as a potential future defendant. The insured incurred over $1.7 million in attorneys\u2019 fees responding to the subpoena and sought coverage under its professional liability insurance policy. The insurer denied coverage on the grounds that neither the subpoena nor the chart listing the insured as a potential future defendant constituted \u201cClaims.\u201d Coverage litigation ensued, and both parties filed motions for summary judgment.<\/p>\n\n\n\n<p>The court concluded that law of the three jurisdictions proposed by the parties\u2014Texas, Connecticut, and Indiana\u2014did not conflict and ruled in favor of the insurer. In doing so, the court analyzed the term \u201cClaim,\u201d which the policy defined as \u201ca demand received by an Insured seeking a remedy and alleging liability or responsibility on the part of the Named Insured for [L]oss.\u201d The court held that neither the subpoena nor the chart constituted \u201cClaims\u201d because they merely identified the insured as a distributor and potential future defendant but did not allege liability or responsibility for a Loss. The court distinguished cases cited by the insured on the ground that the policies at issue in those cases defined the term \u201cClaim\u201d more broadly than the definition at issue.<\/p>\n\n\n\n<p>The court further held that neither the subpoena nor the chart qualified as \u201cClaims\u201d because the costs incurred to respond to the subpoena did not constitute \u201cLoss.\u201d In relevant part, the policy defined \u201cLoss\u201d to include \u201cClaim Expenses.\u201d \u201cClaim Expenses,\u201d in turn, were defined to include \u201c[f]ees charged by any lawyer designated by the [insurer]\u201d and \u201call other fees, costs and expenses resulting from the investigation, adjustment, defense and appeal of a Claim, if authorized by the [insurer].\u201d In this case, the attorneys\u2019 fees were not charged by lawyers designated by the insurer, nor did the insurer provide its authorization. As such, the attorneys\u2019 fees did not constitute \u201cLoss.\u201d<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><strong>When one of your cases is in need of a construction expert, estimates, insurance appraisal or umpire services in defect or insurance disputes &#8211; please call Advise &amp; Consult, Inc. at 888.684.8305, or email <a href=\"mailto:experts@adviseandconsult.net\">experts@adviseandconsult.net<\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>William F. Knauss, III | Wiley The United States District Court for the District of Connecticut granted an insurer\u2019s motion for summary judgment on the grounds that neither a subpoena issued as part of multi-district litigation nor a chart listing the insured as a potential defendant in the litigation constituted a \u201cClaim.\u201d\u00a0Steadfast Ins. Co. v.&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/costs-to-respond-to-third-party-subpoena-do-not-constitute-a-claim\/\">Continue reading <span class=\"screen-reader-text\">Costs To Respond To Third-Party Subpoena Do Not Constitute A Claim<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[14],"tags":[],"class_list":["post-903637","post","type-post","status-publish","format-standard","hentry","category-construction-2","entry"],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Costs To Respond To Third-Party Subpoena Do Not Constitute A Claim - Advise &amp; 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