Defendant Entitled to Defense Costs, but Not Indemnity Costs, Court Rules

SAN FRANCISCO -- A California appeals court has upheld a jury's award of defense costs to one asbestos defendant from another, rejecting arguments from the defendant against which the verdict was entered that a jury must find a duty to indemnify before imposing a duty to defend. Pacific Bell Telephone Co. v. Lyles Diversified Inc., No. A115297 (Calif. Ct. App., 1st Dist., Div. 5).

While rejecting the appellate arguments of Lyles Diversified, the defendant found obligated to defend, the First District Court of Appeal on April 23 also denied Pacific Bell Telephone Co.'s contention that Lyles also had an obligation …