Friday, October 2, 2020

Injured Plaintiff's Desire To Recover on Defendant's Liability Coverage Not Sufficient to Support Intervention in a Coverage Action


In the case of Crum & Forster Specialty Ins. Co. v. American Diamond Builders, Inc., No. 20-1608 (E.D. Pa. July 31, 2020 Joyner, J.), the court denied a personal injury Plaintiff’s Motion to Intervene in a declaratory judgment action on coverage.

The court ruled that a personal injury Plaintiff with a potentially large claim against an insured Defendant does not have a cognizable legal interest in the insured Defendant’s insurance coverage that can support the Plaintiff’s effort to intervene in a coverage dispute between the liability carrier and its insured Defendant.

The court otherwise noted that the fact that a lawsuit may impede a Plaintiff’s ability to recover in a separate litigation is not a sufficient basis to support an intervention in the coverage action.

Anyone wishing to review a copy of this decision may click this LINK.  Here is a LINK to the companion Order.

I send thanks to Attorney James M. Beck of the Philadelphia office of the Reed Smith law firm for bringing this case to my attention.

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