National Casualty Co. v. Forge Industrial Staffing Inc.

WILLIAMS, Circuit Judge.

Fearful that its insurer, National Casualty Corporation (“NCC”), would surreptitiously control its defense in a way that would preclude coverage under the insurance policy, Forge declined to accept insurer-appointed counsel to defend it against claims brought before the Equal Opportunity Employment Commission (“EEOC”). The parties then filed cross-claims for declaratory judgment seeking to resolve whether an actual conflict of interest existed requiring NCC to reimburse Forge for the costs of retaining independent counsel to defend against these EEOC charges.

Because we…