The duty to defend is broader than the duty to indemnify because the duty to defend covers not just claims for which the insured is liable, but also claims for which the insured could be found liable. United Nat’l Ins. Co. v. Frontier Ins. Co., 120 Nev. 678, 687, 99 P.3d 1153, 1158 (2004). Where there is no potential for coverage, there is no duty to defend. Bidart v. Am. Title Ins. Co., 103 Nev. 175, 179, 734 P.2d 732, 734 (1987). When interpreting insurance policy terms, the Nevada Supreme … [Read more...]
The Graves Amendment Eliminates Vicarious Liability Of Motor Vehicle Rental Companies . . . Mostly?
December 2, 2016 by
“This article was originally published in the October 2016 issue of COMMUNIQUÉ, the official publication of the Clark County Bar Association.” Many lawyers are unfamiliar with the 2005 Graves Amendment, 49 U.S.C. § 30106(a). This federal law eliminates vicarious liability claims against vehicle rental companies based exclusively on a company’s status as the owner of the vehicle. Most direct challenges to the law have failed. But practitioners have found ways around effects of the law and may … [Read more...]
If You Don’t Buy Loss Damage Waiver Protection, You May Have To Pay To Repair The Rental Vehicle Even If the Damages Were Not Your Fault.
October 26, 2016 by
Elite Moving & Storage, Inc. made a practice of renting trucks from Malco Enterprises of Nevada, Inc. One of the trucks sustained damage when Elite rolled it over. Malco demanded that Elite pay the damage. When it did not, Malco filed suit. Vehicle rental agreements almost universally say that the renter will be responsible for any damage done to the vehicle, even if the driver was not negligent. Optional LDW protection waives that provision and protects the renter from having to pay … [Read more...]
When Is It Too Late For A UM/UIM Carrier To Intervene In The Underlying Litigation?
October 15, 2016 by
Eric and Erwin Lopez were hurt when a negligent and underinsured driver hit their car. They sued the driver. As discovery progressed, Eric and Erwin convinced the driver to settle. However, they would not give the negligent driver a release. Instead, they offered the driver a Covenant Not to Execute against him in excess of his bodily injury liability limits. The negligent and underinsured driver accepted. The bodily injury liability limits were paid and the Covenant provided. However, … [Read more...]
What Type of Proceedings Must a Nevada Insurer Defend?
September 28, 2016 by
Most liability policies obligate the insurance company to defend its insured in case of a “suit”. So what proceedings constitute a “suit” that an insurer must defend? Assuming a duty to indemnify for damages based on a theory of liability put forth in the Complaint, the insurance company has a duty to defend such a lawsuit. State Farm Mut. Auto. Ins. Co. v. Hansen, 131 Nev. Adv. Op. 74, 357 P.3d 338 (2015). However, the Nevada Supreme Court has not faced a decision as to whether that duty … [Read more...]
