A commercial general liability (CGL) carrier had a duty to defend its policyholder in an arbitration, the court held in Gemini Ins. Co. v. Constrx Ltd., 360 F. Supp. 3d 1055 (D. Haw. 2018). As the Court read the liability policy at issue in that case, the policy provided that the policyholder could not be subjected to liability without a defense. Under the policy provisions, as interpreted by the Court, the CGL carrier had to provide defense coverage for the arbitration.
The Requirements for a Duty to Defend and its consequences for Fulfillment or Enforcement of Good Faith Duties, are discussed based on the case law that decides them including the Gemini decision, in Section 3:51 in 1 DENNIS J. WALL, LITIGATION AND PREVENTION OF INSURER BAD FAITH (Thomson Reuters West, 3d Edition, forthcoming 2020 Supplement).
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