Plaintiff insurer appealed the decision of the Superior Court of Los Angeles County (California), which found that both plaintiff and defendant insurer had to share equally in the coverage and costs of defense of a suit against the insured.
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Plaintiff insurer sued defendant insurer to determine which insurer had to cover a loss suffered by a general insurance agent in covering the costs of defense of a suit against the insured. After the trial court found that both plaintiff and defendant had to share equally, plaintiff appealed. On appeal, the court noted that the parties disagreed as to what type of assumed liability was covered. The court reversed the requirement of an equal contribution for the defense of the insured because there was a dearth of evidence in the record that the general insurance agent suffered any demonstrable damage by the failure of one of the insurers to appear in the action. In all other respects, the court affirmed the judgment.
The court reversed the requirement of equal contribution for the defense of insured because there was a dearth of evidence in the record that general insurance agent suffered any demonstrable damage by the failure of another insurer to appear in the action.