Global Investors Agent Corp. v. National Fire Insurance

This case stems from a dispute concerning the defendant insurers’ duty to defend the plaintiffs against counterclaims resulting from an underlying action initiated by the plaintiffs in the U.S. District Court for the District of Maine (Maine litigation). The Maine litigation settled in mediation prior to the defendants’ providing coverage,3 and the plaintiffs brought suit against the defendants in Massachusetts, alleging *814breach of contract and breach of the covenant of good faith and fair dealing for failing to defend them in the Maine litigation.

Specifically, the plaintiffs claimed…