Maryland Casualty Co. v. Sammons

Where an insurance company, in a contract of insurance, agrees to defend a suit against the insured, brought because of injuries inflicted by the automobile of the insured described in the policy, upon failure of the insurance company to defend such a suit it is liable to the insured for damages for such failure, if it is otherwise liable under the provisions of the policy; but where a suit is instituted by the insurance company in a Federal court praying for a declaratory judgment upon its ultimate liability under the policy, the insurance company is not liable for attorney's fees and…