Obligation of Insurer to Pay Legal Fees

After the underlying matter was settled, the insurer brought a declaratory judgment action seeking determination as to its obligation to pay reasonable legal fees to a private attorney hired by the insured. The insured had refused the insurer's legal representation due to the fact that the insurer offered coverage and defense conditioned upon a reservation of rights letter. This case is Northern Security Insurance Company, Inc. v. R.H. Realty Trust, 941 N.E.2d 688 (2011).