A favorable ruling on behalf of client Federated Mutual was recently reported in The DRI (Defense Research Institute) Covered Events, April 2009 edition (Vol. 1, Issue 9).  In the case, Federated was represented by Meagher & Geer partner Tom Crouch. In the appeal the Arizona Court of Appeals ruled that a trial court erred in denying Federated’s motion to intervene.  Federated had defended its insured against third-party claims by Monterey Homes.  After those claims were dismissed, Federated sought to intervene for the purpose of asserting a subrogation claim for recovery of attorney and expert fees incurred in defending its insured.  In Monterey Homes Arizona Inc. v. Federated Mut’l Ins. Co., No. 08-0056 (Ariz. App. February 10, 2009), the court held that Federated Mutual ‘s subrogation rights were not necessarily extinguished by the insured’s waiver of its claims for recovery of fees and costs.