The California Supreme Court concluded that the insureds could state a cause of action for declaratory relief regarding coverage under an excess policy even though all of the underlying policies had not yet been exhausted. Fox Paine & Co., LLC v. Twin City Fire Ins. Co., 2026 Cal. LEXIS 3942 (Cal. July 27, 2026).
Excess Coverage
Colorado Court Addresses Cooperation Clause and Exhaustion of Auto Policies
By Tred R. Eyerly on
The Colorado Supreme Court encountered issues regarding the insured’s duty to cooperate and the exhaustion requirements in auto policies. USAA v. Wenzell, 2026 Colo. LEXIS 283 (Colo. April 27, 2026).
In 2017, Anthony Wenzell was rear-ended while driving. He had also been involved in a more serious crash in 2014 and required back surgery.
Insurer Entitled to Equitable Contribution from Other Insurer
By Tred R. Eyerly on
The federal district court found that the insurer paying the full settlement amount of the underlying case was entitled to equitable contribution from another insurer. Allstate Indem. Co. v. Fed. Ins. Co., 2026 U.S. Dist. LEXIS 33700 (S.D. Texas, Feb. 19, 2026).
The case involved a dispute arising out of the settlement of a…
Insured’s COVID-19 Claim Survives Insurers’ Motion for Summary Judgment under Some Policies
By Tred R. Eyerly on
After the lower court granted summary judgment to Omni Hotels and Resorts’ claim for coverage due to COVID-19 losses, the Texas Court of Appeals reversed, in part, based upon language in some of the insurers’ policies. TRT Holdngs, Inc. v. Ace Am. Ins. Co., 2025 Tex. App. LEXIS 7407 (Texas Ct. App. Sept. 18…
Court Addresses Insurers’ Dispute Over Which is Primary, Which is Excess
By Tred R. Eyerly on
The court considered cross-motions for summary judgment to determined which carrier was primary and which was excess for coverage of bodily injury. Travelers Indemn. Co. v. Hudson Excess Ins. Co., 2025 U.S. Dist. LEXIS 110298 (S.D. N. Y. June 10, 2025).
21 West 86 LLC, the owner of a building…
Excess Policy that Follows Form Does Not Agree to Pay Defense Costs
By Tred R. Eyerly on
The Texas Supreme Court determined that language in the following form excess policy did not obligate it to defend the insured. Ohio Cas. Ins. Co. v Patterson UTI Energy, Inc., 2025 Tex. LEXIS 1123 (Tex. Sup. Ct. Dec. 20, 2024).
Patterson provided oil-and-gas equipment and services. Patterson was insured by…
Dispute Over Policy’s Aggregate Limit Addressed
By Tred R. Eyerly on
The federal district court rejected the insured's argument and held that the policy's Limit of Liability section placed an annual cap on the aggregate limits available under the policy. Evanston Ins. Co. v. Roman Catholic Bishop of Orange, 2024 U.S. Dist. LEXIS 229122 (C.D. Cal. Dec. 17, 2024).
John OC-5…
Hawaii Intermediate Court of Appeals Reverses Lower Court’s Dismissal of Insureds’ Claims Arising from Work-Related Death
By Tred R. Eyerly on
The court reversed dismissal of all claims against the insurers for a work-related death after determining that policy exclusions conflicted with statutory mandates on coverage. Waiau, et al. v. Hawaii Employers' Mut. Ins. Co, Inc., et al., 2024 Haw. App, LEXIS 583 (Haw. Ct. App., Dec. 31, 2014).
Amos K.
California Supreme Court Finds Vertical Exhaustion Applies to First-Level Excess Policies
By Tred R. Eyerly on
Addressing issues left open in its seminal decision in Montrose, the California Supreme Court found that the language in the first-level excess policies meant that the insured could access the policies upon exhaustion of the directly underlying policies purchased for the same policy period. Truck Ins. Exchange v. Kaiser Cement & Gypsum …
Excess Policy Not Triggered Despite Dissolution of Primary Carrier
By Tred R. Eyerly on
The excess carrier did to have to contribute to the defense and indemnity of the insureds because the dissolution of one of the primary carriers meant full exhaustion had not been accomplished. Continental Cas. Co., et al. v. Argonaut Ins. Co., et al., 331 Ore. App. 26 (Or. Ct. App. 2024).
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