An insured files a declaratory judgment action against their insurer and names an injured third party who shares citizenship with the insured. A declaratory judgment that there is no coverage.In June 2007, the circuit court entered judgment in favor of Statewide and against. The estoppel principle in the liability insurance context provides that an insurer that wrongfully denies coverage may not simply refuse to defend the insured. Kenneth Anspach is a solo practitioner in. All American Insurance Co In re Mary Ann Jones In the torch of the Estate of. Concert's complaint seeks declaratory and injunctive relief from Houston. The phrase "bad faith" is inevitably mentioned in a contentious dispute involving an insurance policy. Wright, Houston, Kevin Parish, Bradley Williams, for Relator Aspen American Insurance Company. Initially, insurers urge that the attorney-client privilege does not apply here because the files are "at issue" in the declaratory judgment action.