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Horizontal Exhaustion Doctrine

Rivkin Radler LLP

Insurance Update - July 2024

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It’s not often that the U.S. Supreme Court weighs in on insurance issues. That’s because the McCarran-Ferguson Act gives states the primary authority to regulate the business of insurance. So when the Supreme Court speaks on...more

Haight Brown & Bonesteel LLP

Appeals Court Rules that Vertical and Not Horizontal Exhaustion Applies to Primary and First-Layer Excess Insurance

In Santa Fe Braun v. Ins. Co. of North America (No. A151428, filed 7/13/20), a California appeals court relied on Montrose Chemical Corp. of California v. Superior Court (2020) 9 Cal.5th 215 (Montrose III), to hold that...more

Payne & Fears

California Supreme Court Rejects Insurers' Bid for Horizontal Exhaustion Rule in New Montrose Decision

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In Montrose Chemical Corp. v. Superior Court, 2020 WL 1671560 (April 6, 2020), the California Supreme Court held that, when one primary policy exhausts in a continuing injury claim, the excess insurer sitting above that...more

Pillsbury Winthrop Shaw Pittman LLP

California Supreme Court Dumps Excess Insurers’ Horizontal Exhaustion Argument

In a long-running environmental case, the state’s high court rejects insurers’ theory of so-called horizontal exhaustion. California Supreme Court hands policyholders a victory in latest Montrose case and upholds...more

White and Williams LLP

California Supreme Court Adopts “Vertical Exhaustion” in the Long-Storied Montrose Environmental Coverage Litigation

On April 6, 2020, the California Supreme Court issued a decision that held a policyholder is entitled to access available excess coverage under any excess policy once it has exhausted directly underlying excess policies for...more

Cooley LLP

Blog: California Supreme Court Opens Door to Excess Coverage, Rejecting Requirement of Horizontal Exhaustion

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In a landmark decision with significant implications for policyholders and insurers dealing with high exposure, continuous injury claims, the California Supreme Court held in Montrose Chemical Corp. of California v. Superior...more

Haight Brown & Bonesteel LLP

Montrose III: Appeals Court Rejects “Elective Vertical Stacking,” but Declines to Find “Universal Horizontal Exhaustion” Absent...

In Montrose Chemical Corp. v. Superior Court (No. B272387; filed 8/31/17) (Montrose III), a California appeals court found that excess insurance is not triggered for continuous and progressive losses until there has been...more

Bradley Arant Boult Cummings LLP

Keep Viking Pump in Your Long-Tail Claim Toolbox

“Long-tail” claims involve personal injury or property damage from alleged exposure to injury-causing products, such as asbestos or PFCs, over a number of years and multiple policy periods. Courts in various jurisdictions use...more

K&L Gates LLP

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

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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

McCarter & English, LLP

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

Harris Beach PLLC

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

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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

Hinshaw & Culbertson LLP

California Court of Appeal Again Finds No Stacking of Liability Policy Limits

Nearly two years ago, the California Court of Appeal for the Second Appellate District issued a decision that upheld the concept of horizontal exhaustion of primary liability policy limits before triggering the obligation of...more

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