In Myron Corp. v. Atlantic Mutual Ins. Co., the plaintiff, a New Jersey corporation, was insured under a CGL policy issued by Atlantic Mutual in New Jersey. Several businesses in various states sued Myron claiming that it sent them “junk faxes” in violation of federal law. Atlantic Mutual refused to defend or indemnify Myron and commenced a declaratory judgment action in Illinois that was eventually dismissed. Myron ultimately won its coverage suit in New Jersey and the Appellate Division held that because Myron prevailed on the merits of its New Jersey coverage lawsuit and was entitled to fees for that litigation, Myron was also entitled to counsel fees for the Illinois litigation because that action stemmed from the same controversy over the coverage issue.
Thanks to Claudia Condruz for her contribution to this post.