Atlantic Casualty Insur. Co. v. Greytak, 2015 MT 149 (May 29, 2015) (McGrath, C.J.; Rice, J., concurring; McKinnon, J., concurring) (7-0, certified question answered)
Issue: Whether the notice-prejudice rule applies to insurers in third-party damages claims.
Short Answer: Yes.
Certified question answered
Facts: In March 2010, GTL sued Greytak and Tanglewood (Greytak) for non-payment of an obligation arising from a construction project. GTL was insured by Atlantic Casualty under a CGL policy. In March 2010 Greytak sent a letter to GTL asserting it had grounds for various counterclaims involving construction defects, and in November 2010 filed counterclaims in the state court action.
In April 2011, GTL and Greytak entered a settlement agreement that required GTL to notify Atlantic of Greytak’s counterclaims.…