Pennsylvania Judge Clarifies Insurer Duty to Defend Water Utility

A Pennsylvania federal judge held that Swiss Re can’t require a water utility to hire different counsel, but can limit the rates it pays, in litigation over the alleged distribution of lead-contaminated water to some Illinois residents.

The decision came after a January appellate ruling affirming that Swiss Re Corporate Solutions Elite Insurance Corp. must pay the utility’s defense costs in suits brought by residents of the Village of University Park, Ill. and the state attorney general. The March 28 ruling from Judge Juan R. Sánchez of the US District Court for the Eastern District of Pennsylvania clarifies the scope ...