Mahmutovic, Administrator v. Indemnity Insurance Corporation (Filed Hartford, 2012)

The defendant insured the Russian Lady Association, LLC which did business as a restaurant/bar. The insured business was sued after one of its customers killed the plaintiff’s decedent. After the death, the insurer tried to cancel its coverage with the Russian Lady. This left the business without a defense or indemnity. The case was tried and a verdict was rendered for 6.5m dollars. This case is brought pursuant to C.G.S. Section 38a-321 to make the insurer pay for the judgment. The insurer has been unable to articulate any reason that would allow it to avoid coverage in this case and yet it continues to obfuscate and defend this action. Not only is this poor practice, it is also extremely expensive for the insurer. By not defending the case, they are now liable for the full judgment plus interest and not just there $1m in coverage.