The federal district court found no duty to defend claims of faulty workmanship under certain policies issued to the insured contractor, but rejected arguments made by the Insurers regarding various provisions of the general liability and excess policies. St. Paul Fire & Marine Ins. Co. v. Bodell Consr. Co., 2022 U.S. Dist.
Excess Coverage
Indemnity Provision Prevails Over “Other Insurance” Clause
By Tred R. Eyerly on
The Second Circuit predicted that the New York appellate courts would find the contractual indemnity provision prevailed over the application of an "other insurance" provisions. Cent. Sur. Co. v. Metro. Transit Auth., 2021 U.S. App. LEXIS 29860 (2nd Cir. Oct. 5,2021).
Long Island Railroad (LIRR) contracted with general contractor…
Ninth Circuit Finds Excess Carrier Can Challenge Primary Insurer’s Settlement Payment and Erosion of Limits
By Tred R. Eyerly on
The court found that the excess carrier had grounds to challenge the primary carrier's allocation of a settlement payment. Scottsdale Ins. Co. v. Certain Underwriters at Lloyds, London, 2020 U.S. App. LEXIS 39771 (9th Cir Dec. 18, 2020).
in the underlying case, Underwriters settled on behalf of the insured law…
California Supreme Court Adopts Vertical Exhaustion for Long-Tail Claims
By Tred R. Eyerly on
In another round of litigation involving coverage issues between Montrose Chemical Corporation and its insurers, the California Supreme Court ruled in favor of Montrose, adopting vertical exhaustion of excess policies. Montrose Chem. Corp. of Calif. v. The Superior Court of Los Angeles County, 9 Ca. 5th 215 (2020).
In 1990…
Umbrella Carrier Must Drop Down to Fill Gap in Coverage
By Tred R. Eyerly on
The umbrella insurer was required to drop down when the primary carrier's policy only covered the additional insured when it was vicariously liable for the named insured's operations. Am. States Ins. Co. v. Ins. Co. of the State of Pa., 2020 U.S. App. LEXIS 585 (9th Cir. Jan. 7, 2020).
…
Excess Has No Duty To Indemnify Based Upon Primary Policy’s Exclusions
By Tred R. Eyerly on
Based upon the primary policy's exclusion, the following form excess policy had no duty to indemnify after the insured reached a settlement in the underlying case. Houston Cas. Co. v. Strata Corp., 2019 U.S. App. LEXIS 3936 (8th Cir. Feb. 6, 2019).
An employee of Strata fell to his death…
Exhaustion of Primary Policy Triggers Excess Coverage
By Tred R. Eyerly on
The Ninth Circuit affirmed the district court's ruling that the excess policy was triggered by settlements exhausting the primary policy. Westport Ins. Corp. v. California Cas. Management Company, 2019 U.S. App. LEXIS 4889 (9th Cir. Feb. 20, 2019).
Doe 1, Doe 2 and Doe 3 filed suit against the insured…
Liability Cap Does Not Exclude Defense Costs for Loss Related to Deep Water Horizon
By Tred R. Eyerly on
The Texas Supreme Court found that Lloyd's endorsement imposing a cap on liability for a joint venture did not exclude coverage for defense costs. Anadarko Petroleum Corp. v. Houston Cas. Co. et al., 2019 Texas LEXIS 53 (Texas Jan. 25 2019j.
Pursuant to a joint venture agreement, Anadarko held a…
Excess Carrier’s Refusal to Approve Settlement or Take Over Defense Results in Bad Faith
By Tred R. Eyerly on
The Ninth Circuit found that under California law, the excess carrier acted in bad faith by refusing to either approve the underlying settlement or take over the defense. Teleflex Med. Inc., v. Nat'l Union Fire Ins. Co., 2017 U.S. App. LEXIS 4996 (9th Cir. March 21, 2017).
The insured, LMA North America, Inc., distributed…
Following Hawaii’s Lead, Excess Carrier Allowed to Pursue Equitable Contribution from Primary
By Tred R. Eyerly on
Citing the Hawaii Supreme Court's decision in St. Paul Fire & Marine Ins. Co. v. Liberty Mut. Ins. Co., 135 Haw. 449, 353 P.3d 991 (2015), the California Court of Appeal determined that the excess carrier could pursue an equitable subrogation action alleging that the primary insurers' unreasonable failure to settle within policy limits…