Fighting for Cover

We represent a client being sued by the State of Oregon for fraud and unjust enrichment in his capacity as an officer of his company. After we tendered defense of the claims to the insurer for his company he obtained insurance defense counsel to represent him. The company's insurer is now claiming that it is not obligated to provide him coverage. In what has become an increasingly common strategy for insurers, it has filed a declaratory judgment action in federal court while simultaneously providing our client defense counsel in the state court litigation. We are moving to stay the federal court case on several legal theories.