Insurance: Products Liability Action – Cooperation Clause – Forklift Accident

Where an insured, which was the target of a personal injury action resulting from a forklift accident, had its defense paid for and controlled by a dealer defense indemnification program, also sought coverage under its general liability policy, and the insurer offered complete coverage but refused to concede its indemnification claim against the indemnification program, the insurer’s action did not qualify as a reservation of rights, and no reservation of rights or conflict of interest entitled the insured to select its own counsel while continuing to enjoy the coverage benefits of the GCL policy, so the insured breached the policy by refusing to allow the insurer to control the defense, and nothing in either policy precluded a third-party indemnification claim by the insurer against the indemnification program, so the insurer was justified in denying coverage based on the insured’s breach of the cooperation clause.

Judgment is affirmed.

Huebel Materials Handling Company, Inc. v. Universal Underwriters Insurance Company (MLW No. 64636/Case No. 12-1777/12-1951 – 15 pages) (U.S. Court of Appeals, 8^th Circuit, Gruender, J.) Appealed from U.S. District Court, Western District of Missouri, Kays, J. (Patrick S. Nolan, Milwaukee, argued for appellant; Todd A. Scharnhorst, Scott K. Logan and Ryan C. Fowler appeared on the brief) (Timothy J. Ahrenhoesterbaeumer, Chesterfield, Missouri, argued for appellee; Brian E. McGovern and James R. Walsh appeared on the brief).

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