Hurricane Sandy is still fresh in the memory of many business owners and homeowners in the Eastern part of the United States. While most hurricanes are best known for their high wind velocity, a storm like Hurricane Sandy was known for the damage that was created by the accumulation of surface water, overflow of inland or tidal waters, and overall flooding conditions.
The conflicting interests that may exist between an insured and their insurance company when it comes to the defense of a lawsuit have led courts to create rules to ensure everyone’s legal rights are respected. These rules implicate issues like the insured’s right to hire their own attorney or the insurer’s ability to reserve their rights to avoid paying a judgment. The conflicting interests can become particularly thorny when one party wishes to settle a case while the other objects to the settlement.