Housing Group v. Gerling America Ins. Co., Inc.

ORDER GRANTING PLAINTIFFS’ MOTION FOR SUMMARY ADJUDICATION, DENYING DEFENDANT’S MOTION FOR SUMMARY ADJUDICATION, AND CONDITIONALLY DISMISSING PLAINTIFFS’ COMPLAINT

In this action, Plaintiffs The Housing Group, The Housing Group-Northern California, and Hidden Hills II Investors (collectively referred to in this order in the singular as THG), acting as the assignees of United National Insurance (UNI), seek contribution from GAIC. THG and GAIC have settled all other claims raised by THG’s complaint. Moreover, the parties have agreed that, if the Court determines that GAIC is liable for contribution, GAIC will pay THG a certain confidential sum of money. Therefore, the sole remaining dis puted issue is whether THG, as UNI’s assignee, is entitled to any contribution from GAIC.

Specifically, the question presented is whether a primary insurer is entitled to contribution from another primary insurer, where the first insurer pays the insured’s claim, the first insurer’s policy disclaims any right to contribution from other primary insurers, and the second insurer’s policy asserts that coverage of the claim should be prorated between all primary insurers. The parties have stipulated to…