Mt. McKinley Insurance v. Swiss Reinsurance America Corp.

ORDER GRANTING PLAINTIFFS’ MOTION FOR SUMMARY JUDGMENT AND DENYING DEFENDANT’S CROSS-MOTION FOR SUMMARY JUDGMENT (Docket Nos. 48 and 56)

Plaintiffs Mt. McKinley Insurance Company and Everest Reinsurance Company assert a claim for equitable contribution against Defendant Swiss Reinsurance America Corporation. Plaintiffs move for summary judgment. Defendant opposes Plaintiffs’ motion and cross-moves for summary judgment. Plaintiffs oppose Defendant’s cross-motion. The motions were taken under submission on the papers. Having considered the papers submitted by the parties, the Court GRANTS Plaintiffs’ motion and DENIES Defendant’s cross-motion.

BACKGROUND

The parties are insurance companies with a common insured, The Herrick Corporation. Plaintiffs claim they are entitled to contribution from Defendant based on its failure to pay its share of a settlement between Herrick and Terry and Karen Strachan.

This action concerns only a legal question regarding Defendant’s insurance policies. The parties stipulate to the facts and evidence described below.

I. Herrick’s Settlement of the Strachan Lawsuit

On August 1, 2007, the Strachans sued Herrick, alleging that Terry Strachan suffered…