Policyholder Denied Fees for Proactive Suit

Hester v. Navigators Ins. Co. (S.D.N.Y., January 23, 2013)

The plaintiff policyholder received a demand letter relating to his use of a certain trademark. The policyholder then proactively sued the entity that sent him the demand letter and later moved for summary judgment against his insurer claiming he is due the full amount of attorneys’ fees and litigation expenses incurred in his plaintiff’s action. The court held that the insurer had no duty to defend until the policyholder was faced with a counterclaim.