⚖ Oral Arguments, with Context

The Fourth Circuit considers who should pay legal-defense costs after guests were injured at a Maryland vacation rental. They fell from a deck when a railing collapsed. Penn National helped pay to defend the property's management company and three of its members in the resulting lawsuit. After that suit settled, Penn National sued another insurer, Generali, seeking a share of the defense costs. A federal judge ruled for Generali, and Penn National appealed. The dispute includes whether Generali's policy covered the three individuals as well as the company, and whether Penn National can recover money after Generali used up its policy limit. You'll hear subrogation: an insurer steps into its insured's legal rights to seek reimbursement. Penn National will argue that Generali owed defense costs incurred before the policy was exhausted. Generali will contend that Penn National fulfilled its own obligation and has no right to recover more. An eroding policy, another recurring term, pays legal-defense costs and settlements from the same limited pool.

Pennsylvania National Mutual Casualty Insurance Co v. Generali-US Branch (No. 25-2144) — U.S. Court of Appeals for the Fourth Circuit, argued October 29, 2026.