Union Indemnity Co. v. Mostov

Liability, or the lack of it, depends upon the terms of the contract between the company and the assured, and this fact is well illustrated by the following language quoted from 36 C J 1093:

“Where the obligation of insurer is to defend all suits of which notice is given to it, and to pay all expenses in defending such suits, it is liable for the expenses incurred by insured in his successful defense of a suit against him, which insurer had declined to defend. But where the obligation of insurer to defend is limited to cases where insured is legally liable on the facts and circumstances of the…