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TOWNE REALTY, INC. v. ZURICH INS. CO.

No. 94-1743.

201 Wis.2d 260 (1996)

548 N.W.2d 64

TOWNE REALTY, INC., Joseph Zilber, Donald Grande and Gerald Stein, Plaintiffs-Respondents, v. ZURICH INSURANCE COMPANY, Defendant-Appellant-Petitioner.

Supreme Court of Wisconsin.

Decided May 22, 1996.

Attorney(s) appearing for the Case

For the defendant-appellant-petitioner there were briefs by Robert Marc Chemers, Scott L. Howie and Pretzel & Stouffer, Chartered, Chicago, IL and Paul J. Pytlik and Otjen, Van Ert, Stangle, Lieb & Weir, S.C., Milwaukee and oral argument by Scott L. Howie.

For the plaintiffs-respondents there was a brief by James E. Culhane, Michael R. Wherry and Davis & Kuelthau, S.C., Milwaukee and oral argument by Michael R. Wheery.

Amicus curiae was filed by Susan R. Tyndall and Hinshaw & Culbertson, Milwaukee for the Civil Trial Counsel of Wisconsin and Wisconsin Insurance Alliance.

DONALD W. STEINMETZ, J.

This case presents the following three issues concerning the breach of an insurer's duty to defend and the resulting damages from such a breach: (1) what constitutes a "tender of defense" under an insurance contract; (2) whether legal defense expenses incurred before the tender are allowable as damages; and (3) when, if ever, is an insurer responsible for the legal expenses involved in pursuing...

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