Challenging the Payment Decisions of Underlying Insurers
October 2022
INSURANCE NEWS & ANALYSIS
“Wrongful Exhaustion” – Challenging the Payment Decisions of Underlying Insurers
In his article for ABA’s Tort Trial and Insurance Practice Section, Partner Nathan Lee examines two cases that highlight the conditions under which an excess insurer may challenge the payment decisions and coverage determinations of the underlying insurer.
WHAT’S NEW AT GRAY•DUFFY
Gray•Duffy Obtains Unanimous Jury Verdict in Favor of Client Related to a $2.3M Fire Damage Claim
Following a three-week jury trial, Gray•Duffy secured a complete defense verdict on September 30, 2022, for Eurocon Group Inc., a Los Angeles-based construction company, in a subrogation claim brought by Nationwide Mutual Insurance Company.
In the action, Nationwide claimed Eurocon Group failed to evaluate and address dangerous conditions of a water heater during a 2012 remodel of the policyholder’s restaurant. This allegedly led to a May 2016 fire which caused Nationwide’s policyholder to incur property damage and related damage in the amount of $2.3 million. Managing Partner Michael Eisenbaum and Partner Michelle MacDonald represented Eurocon Group in the Orange County Superior Court.

John Duffy and Timothy Thornton Selected to The Best Lawyers in America 2023; Nathan Lee Named to “Ones to Watch” List
Partners John Duffy and Timothy Thornton have been selected by their peers for inclusion in The Best Lawyers in America © 2023. This marks Duffy’s first time being named to the list and Thornton’s thirteenth year on the list for their work in insurance law .
Partner Nathan Lee was recognized on the Best Lawyers “Ones to Watch” list in the area of Personal Injury Litigation – Plaintiffs. This is his first year being named to the list.

Timothy Thornton Appointed to ABA TIPS Standing Committees for 2022-23
Partner Timothy Thornton has been appointed to the following American Bar Association Tort Trial and Insurance Practice Section (TIPS) Committees for the 2022-23 bar year:
- Vice Chair of the Self-Insurers and Risk Managers General Committee
- Book Publishing Editorial Board Standing Committee
- Conference Standing Committee
- The Brief Editorial Board Standing Committee
Gray•Duffy, LLP
Southern California
15760 Ventura Blvd.
16th Floor
Encino, CA 91436
(818) 907-4000
Northern California
555 Twin Dolphin Drive
Suite 300
Redwood City, CA 94065
(650) 365-7343
These articles are necessarily general in nature and do not substitute for legal advice with respect to any particular case. Readers should consult with an attorney before taking any action affecting their interests.
Please Note : This article is necessarily general in nature and is not a substitute for legal advice with respect to any particular case. Readers should consult with an attorney before taking any action affecting their interests.