Interstate Fire & Casualty Co. v. Underwriters at Lloyd's, London

This ease comes to our court for the second time. See Interstate Fire & Cas. Co. v. Archdiocese of Portland, 35 F.3d 1325, 1327 (9th Cir.1994) (“Interstate II ”). The Archdiocese of Portland and Underwriters at Lloyd’s, London (“Lloyd’s”) now appeal a district court order granting summary judgment in favor of Interstate Fire & Casualty Co. Interstate cross-appeals the district *1236 court’s denial of an award of attorneys’ fees. We have jurisdiction under 28 U.S.C. § 1291 (1994). We affirm both orders of the district court.

BACKGROUND

Father Laughlin, once a priest for the Archdiocese, sexually molested Fred Grgieh on numerous occasions between 1974 and 1983. In 1985, Grgieh sued the Archdiocese. The most serious sexual activity took place during the years 1979-1983, and the Archdiocese’s potential liability spanned those years. Grgieh settled his lawsuit in 1986 for $500,-000 plus attorneys’ fees. The issue now in dispute is the proper apportionment of the burden of that settlement among the Archdiocese and its two insurers.

Lloyd’s was the Archdiocese’s primary insurer. The Lloyd’s policy required the Archdiocese to maintain a Self-Insured Retention (“SIR”) of $75,000 for…