SHELBY STEEL FABRICATORS, INC. v. U.S.F. & G. INS. CO.

88-1350.

569 So.2d 309 (1990)

SHELBY STEEL FABRICATORS, INC. v. UNITED STATES FIDELITY AND GUARANTY INSURANCE COMPANY.

Supreme Court of Alabama.

Rehearing Denied September 21, 1990.


Attorney(s) appearing for the Case

Frank M. Bainbridge and Bruce F. Rogers of Bainbridge, Mims & Rogers, Birmingham, for appellant.

Allwin E. Horn III and James A. Kee, Jr., Spain, Gillon, Grooms, Blan & Nettles, Birmingham, for appellee.


ADAMS, Justice.

In this appeal from a declaratory judgment action, the sole issue is whether an insurer, after undertaking to defend a potential insured, without reserving its rights to, nevertheless, deny coverage and without keeping that insured apprised of the status of his case, can thereafter successfully deny coverage two years after beginning a defense in the case.

The relevant facts are as follows:

Shelby Steel Fabricators purchased from United...

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