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BABCOCK & WILCOX v. AMERICAN NUCLEAR INS.

No. 2 WAP 2014

131 A.3d 445 (2015)

The BABCOCK & WILCOX COMPANY and B & W Nuclear Environmental Services, Inc. v. AMERICAN NUCLEAR INSURERS and Mutual Atomic Energy Liability Underwriters and Other Interested Party, Atlantic Richfield Company. American Nuclear Insurers and Mutual Atomic Energy Liability Underwriters v. The Babcock & Wilcox Company and B & W Nuclear Environmental Services, Inc., and Atlantic Richfield Company. Appeal of Babcock & Wilcox Power Generation Group, Inc. (f/k/a The Babcock & Wilcox Company) and Babcock & Wilcox Technical Services Group, Inc. (f/k/a B & W Nuclear Environmental Services, Inc.), and Atlantic Richfield Company.

Supreme Court of Pennsylvania.

Decided July 21, 2015.

Attorney(s) appearing for the Case

James A. Dattilo , Dattilo & Associates, P.C., Pittsburgh, for Atlantic Richfield Company.

Thomas More Reiter, Esq. , K & L Gates LLP, Pittsburgh, for Babcock & Wilcox Power Generation Group, Inc., Babcock & Wilcox Technical Services Group, Inc.

John Norig Ellison, Esq. , Jay M. Levin , Philadelphia, Esq., James Christopher Martin, Esq. , Traci Sands Rea, Esq. , Reed Smith LLP, Pittsburgh, for United Policyholders, et al.

Jon Geoffrey Hogue, Esq. , Pittsburgh, John Edward Murray, Esq. , Murray, Hogue & Lannis, Andrew Amer, Esq. , for American Nuclear Insurers, Mutual Atomic Energy Liability Underwriters.

Nicholas Andrew Cummins, Esq. , Philadelphia, Bennett, Bricklin & Saltzburg, L.L.P., for Pennsylvania Defense Institute.

Randy J. Maniloff, Esq. , White and Williams, L.L.P., Philadelphia, for Property Casualty Insurers Association of America.

CASTILLE, C.J., SAYLOR, EAKIN, BAER, TODD, McCAFFERY, STEVENS, JJ.

OPINION

We granted review to consider an issue of first impression regarding whether an insured forfeits insurance coverage by settling a tort claim without the consent of its insurer, when the insurer defends the insured subject to a reservation of rights, asserting that...

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