Nautilus Ins. Co. V. Access Med., LLC (Nevada)

• Published date: 19 August 2021
• Subject Matter: Insurance, Litigation, Mediation & Arbitration, Insurance Laws and Products, Arbitration & Dispute Resolution
• Law Firm: Lewis Brisbois Bisgaard & Smith LLP
• Author: Priscilla O'Briant

(August 2021) - Many states allow insurers to recover case costs once a court determines that they had no duty to defend a policy holder, but only where certain conditions are met. In a recent 4-3 decision, the Nevada Supreme Court held that where an insurer pays to defend a policyholder against a lawsuit and that defense is ultimately not owed, the insurer is entitled to reimbursement of its defense costs, even where the insurance policy contains no reservation of rights. Nautilus Ins. Co. v. Access Med., LLC, 482 P.3d 683 (Nev. 2021).

The Nevada Supreme Court received a certified question from the U.S. Court of Appeals for the Ninth Circuit. The case at issue involved a business dispute between former business partners who sold medical devices. On cross-complaint, Ted Switzer included a cause of action for interference with prospective economic advantage based upon his partner's alleged interference with his business relationship with hospitals. During discovery, an e-mail was produced by the defendants which stated that the current distributor (Switzer) had been banned from selling the...