An ongoing insurance dispute concerning the costs incurred by a real estate development and management company to retain independent counsel in a proposed antitrust class action has been directed to arbitration. This dispute entails a disagreement over whether the insurer is obligated to cover the legal costs associated with hiring independent counsel.
The case, adjudicated by a California federal judge, involves a class action lawsuit alleging antitrust violations. The core of the disagreement lies in the interpretation of policy terms related to defense costs and the degree of control the insurer can exert over the selection of legal representation.
The company’s insistence on an independent counsel, presumably to avoid any potential conflicts of interest, has led to this latest legal juncture. The decision to move the case to arbitration may streamline the resolution process, allowing for a potentially faster and specialized determination on the coverage issue.
Further details on this case can be found in the full report by Bloomberg Law here.