Pro Rata Allocation Rule

News & Analysis as of

Supreme Court of Delaware Decides Long-Standing Dispute in Viking Pump Action

The Supreme Court of Delaware issued its decision in the long-standing dispute in In re Viking Pump, Inc. and Warren Pumps, LLC. The appeal arose out of several rulings in the Court of Chancery and after a jury trial in the...more

Louisiana Supreme Court Adopts Pro Rata Allocation of Defense Costs Among Insurers and Insured

On September 7, 2016, the Louisiana Supreme Court applied, for the first time, a pro rata allocation method to defense costs where commercial general liability policies provided coverage during a portion of the time of...more

Louisiana Supreme Court Adopts Time on the Risk Allocation for Defense Costs

In its recent decision in Arceneaux v. Amstar Corp., 2016 La. LEXIS 1675 (La. Sept. 7, 2016), the Supreme Court of Louisiana had occasion to consider whether an insured must bear a pro rated share of defense costs for...more

Louisiana Extends Pro Rata Allocation to Defense Costs

The Louisiana Supreme Court has endorsed pro rata allocation of defense costs associated with hearing loss cases across triggered policy periods. The decision reversed a 2015 appellate ruling that pro rata allocation applied...more

“All Sums” Claims Another Victory, This Time In New York

In Viking Pump, Inc., et al. v. TIG Insurance Co., et al., 2016 N.Y. LEXIS 1018 (N.Y. May 3, 2016), policyholders scored a victory when New York’s highest court applied “all sums” allocation and vertical exhaustion. The...more

Big Win for Policyholders in NY: “All Sums” Allocation, Vertical Exhaustion Apply

On May 3, 2016, the New York Court of Appeals issued a much-anticipated and significant decision on allocation and exhaustion issues in the context of long-tail liability insurance. The case was styled Viking Pump, Inc. v....more

New York’s Highest Court Issues a Noteworthy Decision, Rejecting “Pro Rata” Allocation in the Asbestos Bodily-Injury Context

On May 3, the New York Court of Appeals unanimously held that an “all-sums” method of allocation should be used to apportion liability among excess insurers based on the policy language at issue in the case. Contrary to...more

New York High Court Applies All Sums Allocation To Long-Tail Claims Under Certain Insurance Policies

The New York Court of Appeals recently answered two certified questions from the Delaware Supreme Court concerning insurance allocation, and the Court’s answers may impact significantly policyholders litigating “long-tail”...more

Insurance Recovery Group News: New York Holds Excess Insurers Liable For “All Sums” Related To Long Tail Claims

For more than two decades, the problem of allocating the costs of long tail claims – such as environmental and asbestos claims – among multiple insurance carriers has generally been resolved in one of two ways. Courts in...more

New York’s Highest Court Creates Exception to Pro Rata Allocation

On May 3, 2016, the New York Court of Appeals answered two certified questions posed by the Delaware Supreme Court regarding the appropriate allocation method for long-tail claims among successive excess carriers. The first...more

New York’s Highest Court Holds All Sums Allocation And Vertical Exhaustion Applied To Excess Insurance Coverage For Asbestos...

On May 3, 2016, the Court of Appeals of New York issued its opinion in In re Viking Pump, No. 59, 2016 WL 1735790, and found that “all sums” allocation and vertical exhaustion applied to the insureds’ claims to excess...more

NY High Court’s ‘All Sums’ Allocation Ruling in Viking Pump is a Game Changer

On May 3, 2016, New York’s high court took a giant step forward in protecting policyholders facing latent injury claims, allowing them to avoid multiple deductibles, retentions and insolvent coverage. In the Matter of Viking...more

New York’s Highest Court Rules in Favor of “All Sums” and Vertical Attachment in Certified Question from Delaware Supreme Court

In the recent decision of Viking Pump, Inc., et al. v. TIG Insurance Co., et al., 2016 N.Y. LEXIS 1018 (N.Y. May 3, 2016), the New York Court of Appeals (New York’s highest court), on questions certified by the Delaware...more

What Methods of Allocation Will Prevail in New York?

In the Matter of Viking Pump, Inc. and Warren Pumps LLC Insurance Appeals, No. CTQ-2015-00003 (NY) - Yesterday, on March 29, 2016, the New York Court of Appeals, New York’s highest court, will hear oral argument on two...more

RBC Capital Markets, LLC v. Jervis, No. 140, 2015 (Del. Nov. 30, 2015) (Valihura, J.)

In this en banc decision, the Delaware Supreme Court affirmed the principal legal holdings and final judgment of the Court of Chancery finding, among other things, that RBC Capital Markets, LLC (“RBC”) aided and abetted...more

Treasury Finalizes Regulations on the Varying Interests Rule Under Section 706

On August 3, 2015, the U.S. Department of Treasury (Treasury) and the Internal Revenue Service (IRS) issued final regulations under Section 706(d), providing rules for determining the partners’ distributive shares of...more

The ERISA Litigation Newsletter - September 2015

Editor's Overview - It has been a little more than one year since the U.S. Supreme Court altered the legal landscape for litigating ERISA breach of fiduciary duty claims relating to the investment in employer stock...more

Treasury, IRS Extend Certain FATCA Transitional Rules

IRS Notice postpones several key deadlines and provides other relief. On September 18, the US Internal Revenue Service (IRS) released Notice 2015-66 (the Notice) announcing that the US Department of the Treasury and the...more

Minding Your (Policy) Language – Indiana Supreme Court Certifies Pro Rata Allocation Ruling From Lower Court

Courts have struggled between two approaches on how to allocate damages when multiple, consecutive CGL policies have been triggered in situations involving continuous injury or property damage. The majority approach, pro rata...more

New York Supreme Court Pro Rata Allocation for MGP Sites on Long Island Clarifies Self-Insured Periods

A New York State trial court judge applied a pro rata time on the risk allocation for pollution from manufactured gas plants on Long Island. Keyspan Gas East Corp. v. Munich Reinsurance America, Inc.,Index No. 604715/1997,...more

Recent Massachusetts Decision Applies Pro-Rata Allocation and Continuous Trigger to Progressive Injury Claims, Including Asbestos...

What you need to know: A recent Massachusetts federal trial court ruling applied pro-rata allocation and continuous trigger to progressive injury claims arising from asbestos and toxic chemicals and metals....more

Illinois Appellate Court Endorses “All Sums” Allocation Rule for Asbestos Bodily Injury Losses under Excess and Umbrella Insurers

On March 5, 2013, the First District Appellate Court of Illinois ruled in John Crane, Inc. v. Admiral Ins. Co., 2013 IL App (1st) 093240-B that excess and umbrella insurers covering asbestos-related injury claims are jointly...more

First Circuit Affirms Pro-Rata Damages Verdict in Boston Gas

What you need to know: The US First Circuit Court of Appeals affirmed the trial court’s pro-rata, time-on-the-risk allocation of damages from environmental contamination in the long-running Boston Gas case. The court...more

Policy Observer - January 2013

It has been nearly three months since Superstorm Sandy battered the East Coast of the United States. With several hundred thousand residents still without homes and many businesses still operating out of temporary facilities,...more

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