In a declaratory judgment action, business owning bar sought recovery of its costs from its general liability carrier of its defense in litigation in which it was successful in obtaining summary judgment. Insurance carrier had not only denied coverage but also denied a duty to defend. The denial of defense was based upon the wording of the complaint in which it was alleged a patron was overserved by employees of the bar. The evidence in the case revealed that there were no facts supporting the contention of overservice and bar was granted summary judgment. Given that allegations of the complaint were not proved, bar contended carrier owed the duty to defend and should have at least provided cost of defense as such a result was a possible outcome of the allegations. The court of appeals affirmed no coverage and the supreme court denied discretionary review.
Insurance coverage/duty to defend/dram shop liability
