Northern County Mutual Insurance Co. v. Davalos

The automobile liability policy in this case obligated the insurer to provide a defense for covered claims and granted the insurer the right to conduct that defense. The insured, however, refused the insurer’s tendered defense because of a disagreement about where the case should be defended. The issue we must decide is whether a disagreement over venue is a sufficient reason for the insurer to lose its right to conduct the defense, while still remaining obligated to pay for it. The court of appeals concluded that it was sufficient, affirming an award of damages against the insurer for breach…