SNR Denton on R.C. Wegman Construction Co. v. Admiral Insurance Co.: When Must An Insured Be Warned About Excess Exposure and Who Must Do It?

R.C. Wegman Construction Co., a construction manager, was sued for injuries suffered by Brian Budrick, an employee of one of the contractors working at the site. The contractor’s policy with Admiral Insurance Co. named Wegman as an additional insured and Admiral defended. While Wegman’s claim...

Appeals Court Rules Umbrella Carrier Must Defend Insured

By Amanda Hairston, Associate, Farella Braun + Martel In what appears to be the first published California decision on the issue, the Second District Court of Appeal recently held that a carrier must defend its insured when the claim may not be covered by the primary policy and “potentially”...

Mike Aylward and Eric Barber on “Getting the Drop on Excess Insurer: The Wisconsin Supreme Court Finds that an Excess Insurer Has a Duty to Defend in Johnson Controls in the Absence of Underlying Exhaustion”

By Mike Aylward and Eric Barber The article, “Getting the Drop on Excess Insurer: The Wisconsin Supreme Court Finds that an Excess Insurer Has a Duty to Defend in Johnson Controls in the Absence of Underlying Exhaustion,” by Michael F. Aylward and Eric Barber appears in the September/October...

Reed Smith LLP on Rosciti v. Liberty Mutual Insurance Company: An Analysis of Accessing Excess Coverage of a Bankrupt Entity

By Ann V. Kramer and Jennifer D. Katz In Rosciti v. Liberty Mutual Insurance Company , the District Court of Rhode Island concluded that an individual seeking damages from a bankrupt company cannot directly collect from that company’s excess insurer if the bankrupt company has not exhausted...

Fifth Circuit Holds Settlement With Primary Insurer Did Not Result In Exhaustion

By Brian Margolies, Partner, Traub Lieberman Straus & Shrewsberry LLP In Citigroup Inc. v. Federal Ins. Co ., 2011 U.S. App. LEXIS 16316 (5 th Cir. Aug. 8, 2011 ) , the United States Court of Appeals for the Fifth Circuit, applying Texas law, considered whether a settlement between an insured and...

Farella Braun + Martel LLP: Recent Media Coverage Overstates Impact of New Second Circuit Case Regarding “Drop-Down” Issue

By Erica Villanueva, Partner, Farella Braun + Martel LLP There has been much hand-wringing over the Second Circuit’s decision in Mehdi Ali v. Federal Insurance Co. , __ F.2d __ (2d Cir. 2013) [ enhanced version available to lexis.com subscribers ], in which the court declined to extend the holding...

Settlements With Underlying Layers Satisfy Exhaustion Conditions in Excess Policies

In his commentary, "Settlements With Underlying Layers Satisfy Exhaustion Conditions in Excess Policies," Michael T. Sharkey of Perkins Coie LLP analyzes the recent decision of Quellos Group LLC v. Federal Insurance Co. , No. 68478-7-1, 2013 Wash. App. LEXIS 2626 (Nov. 12, 2013) [ enhanced...

Below-Limits Settlements Do Not Result In The Loss Of Excess Coverage - Zeig Remains Guiding Precedent, Even Post-Ali

By Adam G. Unikowsky, Attorney, Jenner & Block LLP Excess insurance policies typically include provisions stating that the policyholder cannot pursue coverage from the excess insurer until the policyholder has received payment from the underlying insurers. One of the most frequently-litigated...