A Missouri Insurer’s Right to Intervene: The Seminal Case of McCrackin and Its Early Treatment in Federal Court

After years of insurer-unfriendly coverage and bad faith rulings, the Missouri Supreme Court’s decision in McCrackin v. Mullen signals a meaningful shift. The Court held that insurers with good-faith coverage disputes may intervene in underlying tort actions to seek a stay while coverage is resolved through a declaratory judgment action. Although not mandatory, the Court’s guidance favoring declaratory actions filed in the same court as the tort case carries significant strategic implications—particularly as federal courts begin to scrutinize whether insurers are following McCrackin’s framework when seeking coverage determinations.