Weekly Law Resume - January 19, 2012: Insurance – Contribution and Subrogation


American States Insurance Company v. National Fire Ins. Co. of Hartford
Court of Appeal, Fourth District (January 6, 2012)

Equitable contribution by a carrier is generally subject to a two-year statute of limitation. In this case, the carrier sought to extend the statute by sounding a claim in subrogation.

American States Insurance Company (ASIC) and National Fire Insurance Company of Hartford (National) had both issued successive liabilities to the same insures, Vision Systems, Inc. and S.D. Interstate Glass. Both insurers were named as defendants in an action brought by a homeowners association. The underlying action settled, and the action was dismissed in April of 2007. ASIC contributed $965,666 on behalf of S.D. Interstate Glass and $353,071.65 on behalf of Vision Systems, Inc. National did not contribute to fund the settlement on behalf of either insured. The insures assigned to ASIC their rights against National for failing to defend or indemnify them.

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