Northwest Pump & Equipment Co. v. American States Insurance

In Northwest Pump v. American States Ins. Co., 141 Or App 210, 917 P2d 1025 (1996), we held that defendant wrongfully refused to defend plaintiff, its insured, against a claim brought by a third party for environmental cleanup costs associated with gasoline discharged from an underground storage tank that was installed by plaintiff. Plaintiff settled the third-party claim for $10,000 before trial, without admitting liability. We remanded for the trial court to determine “plaintiffs reasonable defense costs and the reasonableness of the amount of settlement.” Id. at 218. On reconsideration,…