Auto-Owners Insurance Co. v. Bolt Factory Lofts Owners Association, Inc.
2021 CO 32. No. 19SC664. Intervention as of Right—Nunn Agreements—Insurance.
May 24, 2021
The Supreme Court considered whether an insurer that is defending its insured under a reservation of rights is entitled to intervene as of right under CRCP 24(a)(2) where the insured enters into a Nunn agreement with a third-party claimant, but rather than entering into a stipulated judgment, agrees with the third party to proceed via an uncontested trial to determine liability and damages. The Court concluded that the insurer’s interest in the litigation was not impaired because the insurer may sufficiently protect its interest in a subsequent proceeding. The Court therefore held that the insurer was not entitled to intervene as of right under CRCP 24(a)(2).
Accordingly, the Court of Appeals’ judgment was affirmed, albeit by different reasoning.