Babcock & Wilcox Co. v. American Nuclear Insurers

OPINION

Justice BAER,

We granted review to consider an issue of first impression regarding whether an insured forfeits insurance coverage by settling a tort claim without the consent of its insurer, when the insurer defends the in*447sured subject to a reservation of rights, asserting that the claims may not be covered by the policy. ■ After review, we reverse the decision of the Superior Court and reinstate the judgment of the trial court.

The case history spans two decades, beginning with the 1994 filing of a federal class action lawsuit against Appellant-Insureds Babcock & Wilcox Company (B & W)…