COURT DISMISSES EQUITABLE CONTRIBUTION CLAIM IN MULTI-PARTY COVERAGE DISPUTE
The parties to this insurance dispute sought to determine which insurance company, if any, must provide coverage to Charleston Area Medical Center, Inc. (“CAMC”) in regards to a verdict and resulting settlement. In the Second Amended Complaint, the plaintiff, Executive Risk Indemnity, Inc. (“ERI”), asserted two claims, which were a declaratory judgment action and a claim for equitable contribution against a captive insurance company, Vandalia Insurance Company (“Vandalia”), and an assumption reinsurer, Employers Reinsurance Corporation (“ERC”). CAMC and Vandalia brought cross claims against ERC, and ERC moved to dismiss all claims.
On ERI’s equitable contribution claim, the court found that one part of the policy assumed by ERC was in excess to the policy issued by ERI and that two other parts of the policy assumed by ERC did not insure the same risk as the policy issued by ERI. Thus, the court dismissed ERI’s equitable contribution claim. The court then denied the dismissal of ERI’s, CAMC’s, and Vandalia’s declaratory judgment cause of actions against ERC because a substantial live controversy existed between the parties and the issuance of a declaration of rights or other legal relations was warranted. Executive Risk Indem., Inc. v. Charleston Area Med. Ctr., Inc., Case No. 08-00810 (USDC S.D. W. Va. July 30, 2009).
This post written by Dan Crisp.
