Travelers Casualty & Surety Co. v. American International Surplus Lines Insurance

ORDER RE CROSS-MOTIONS FOR SUMMARY JUDGMENT

This matter is before the court on the cross-motions for summary judgment of plaintiff Travelers Casualty and Surety Company (“Travelers”) and of defendant American International Surplus Lines Insurance Company (“AISLIC”). AISLIC removed Travelers’ action for subrogation and equitable contribution from state to federal court in November 2005 on the basis of diversity jurisdiction. Pursuant to Civil Local Rule 7.1(d)(1), the court finds the issues appropriate for decision on the papers and without oral argument. For the reasons discussed below, AISLIC’s motion is DENIED, and Travelers’ motion is GRANTED.

I. BACKGROUND

AISLIC issued two primary Commercial General Liability (“CGL”) policies to Daley Corporation (“Daley”), as its named insured, one for the period May 1,- 1991 to May 1, 1992 and one for the period May 1, 1992 to May 1, 1993, to cover third party claims of property damage as a result of an occurrence during the policy period. A policy endorsement committed Daley to a $25,000 per occurrence self-insured retention (“SIR”). Daley performed grading operations for a condominium construction project (“the Project”) under a…