Deere & Co. v. Allstate Ins. Co.

*104 *504 I. INTRODUCTION

This insurance coverage dispute arises from numerous claims filed, in various jurisdictions, against plaintiff and appellant Deere & Company (Deere) for personal injuries arising from alleged exposure to asbestos-containing brakes, clutch assemblies, and gaskets used in Deere machines. Deere filed suit for declaratory relief and breach of contract with respect to over 100 umbrella and excess general liability policies issued to Deere from 1958 through 1986. Deere sought a declaration of coverage and compensatory damages for breach of contract, claiming that the policies covered the asbestos personal injury claims. At issue in the current phase of the case, are two issues that proceeded to trial, to wit: (1) whether the higher-layer excess policies were triggered once the first-layer excess policy limits, which were subject to a self-insured retention (SIR) paid by Deere, had been exhausted; and (2) whether the insurers' indemnity obligation extended to Deere's defense costs incurred in asbestos claims that had been dismissed.

The trial court found in favor of the insurers, concluding that the retained limits Deere agreed to pay in its first layer of…