Travelers Casualty & Surety Co. v. American Equity Insurance

I. Introduction

Defendant American Equity Insurance Company (American Equity) appeals from a judgment of the Alameda County Superior Court following the grant of summary judgment in favor of plaintiff Travelers Casualty and Surety Company (Travelers) on Travelers’ complaint for indemnity and contribution against American Equity. The trial court concluded that the doctrine of equitable contribution, rather than subrogation, applied, and that Travelers was entitled therefore to recover from American Equity 50 percent of the costs it had expended in defense and indemnification of the parties’ common insured, Preferred Capital Management, Inc. (Preferred Capital).

II. Background

A. Court Order and Property Management Agreement

Preferred Capital managed Lakeview Tower Apartments (Lakeview) in Oakland under a property management agreement between Preferred Capital and M.A. Hoopes, the receiver appointed by the court in connection with a foreclosure action on Lakeview.

The court order appointing the receiver authorized her to manage the property or to retain a property manager and also provided in relevant part: “If sufficient insurance coverage [for the property] does…