In its recent decision in the case of Selective Way Insurance vs. Hospitality Group Service, 2015 Pa. Super. 146 (Pa. Super. July 7, 2015), the Pennsylvania Superior Court ruled that the statute of limitations for the filing of a declaratory judgment action by an insurance company on the duty to defend and/or indemnify begins to run when the cause of action for declaratory judgment arises.
More specifically, the court stated that a determination as to when the cause of action for a declaratory judgment arises requires a determination by the trial court of when the insurance company had sufficient factual basis to support contention that it had no duty to defend or indemnify its insured in the underlying matter.
The Majority Opinion by Judge Donohue can be viewed HERE.
The Dissenting Opinion by President Judge Emeritus Ford Elliott can be viewed HERE.
The Dissenting Opinion by Judge Mundy can be viewed HERE.
Source: "Court Summaries" by Timothy L. Clawges in the Pennsylvania Bar News (August 3, 2015).