CSE Ins. Group v. Northbrook Property & Cas. Co.

KLEIN (Brett), J. [*]

Plaintiffs CSE Insurance Group and CSE Safeguard Insurance Company appeal from a judgment of dismissal entered after a demurrer was sustained, without leave to amend, to their complaint for declaratory relief against respondent Northbrook Property and Casualty Company. There are no other parties.

The question presented is whether a liability insurer, despite a policy provision that the coverage provided is excess over all other available insurance, must nonetheless contribute pro rata to the coverage afforded by a second liability insurer whose policy explicitly states it will contribute pro rata with other insurance.

In this instance, both policies were umbrella policies, affording coverage only after exhaustion of underlying insurance.

No issue is presented regarding duty to defend.

As this is a demurrer case, all facts are taken solely from the complaint. George J. Stadtler III, driving an automobile in Covina, was in a collision with a motorcycle. The motorcyclist's passenger was severely injured. She sued Stadtler and his employer, Spintex.

Stadtler had an automobile liability policy with a $100,000 limit. Stadtler also had an umbrella…