Centennial Insurance v. United States Fire Insurance

Centennial Insurance Company (Centennial) appeals from a judgment entered in favor of respondent United States Fire Insurance Company (U.S. Fire) using the “time on the risk” method to apportion the parties’ respective defense costs accrued in defending their mutual insured. Centennial contends the trial court’s choice of a method of allocation based on the carriers’ respective time on the risk resulted in an inequitable allocation of defense costs; it asks this court to establish a “single bright line rule” mandating the equal apportionment of defense costs among multiple insurers in all cases. Centennial’s arguments are unsupported by established law and its position is undermined by the facts of the case. We therefore affirm the judgment.

Factual and Procedural Background

The underlying facts are not in dispute. Lincoln Associates (Lincoln) was a joint venture responsible for developing, constructing and marketing a residential condominium project known as Pacific Plaza, located in San Leandro. U.S. Fire insured Lincoln under a general liability insurance policy for a period of approximately five and one-half months from January 19, 1982, through July 1, 1982. 1…