Federal Insurance v. X-Rite, Inc.

OPINION OF THE COURT

ROBERT HOLMES BELL, District Judge.

This case presents complementary actions for declaratory judgment concerning the parameters of an insurer’s contractual duty to defend claims brought against the insured. Specifically, the fundamental questions posed may be stated as follows: Where the insurer assumes its contractual duty to defend but reserves its right to contest its liability to indemnify the insured for certain of the claims, such that a potential conflict of interest arises, who is ultimately entitled to choose counsel and control the litigation; and if the insured…