United States Fire Insurance v. National Union Fire Insurance

Defendant National Union Fire Insurance Company of Pittsburgh, Pennsylvania (hereinafter National) appeals from a judgment in favor of plaintiff United States Fire Insurance Company (hereinafter United). The judgment declared the respective parties’ obligations as insurers in respect of an aircraft accident in which Philip Morgan, Jr., was the pilot. Claims for the resultant deaths and injuries were settled by United for $1,527,000, with a contribution of $300,000 from a nonparty carrier. The judgment decreed that with respect to the accident: “Defendant’s policy AV 347207 covered Philip Morgan, Jr., as an insured and is underlying insurance as to Plaintiff’s policy DCL 002799 which likewise covered Philip Morgan, Jr., as an insured. That Defendant’s policy must be exhausted before Plaintiff’s policy comes into play and/or before any payment is due under Plaintiff’s policy, and that Plaintiff, having paid $1,000,000 in settlements that should have been paid by Defendant, is entitled to reimbursement in the amount of $1,000,000 from Defendant plus interest at the legal rate from the date Plaintiff made its payment; to wit, from September 1, 1976.”

The judgment also…