Genie Industries, Inc. v. Federal Insurance

MEMORANDUM *

Under Washington law, insurance contracts “are interpreted according to the intent of the parties, which is discerned from the language of the contract and the circumstances in which it is formed.” Safeco Ins. Co. v. Auto. Club Ins. Co., 108 Wash.App. 468 , 31 P.3d 52, 57 (2001) (footnote reference omitted). Further, “parties may ... contract for automobile insurance coverage that only becomes available after all other insurance available, including excess insurance, is exhausted.” New Hampshire Indem. Co. v. Budget Rent-A-Car Sys., Inc. (Budget), 148 Wash.2d 929 , 64 P.3d 1239, 1242 (2003) (En Banc), as amended.

*542 Royal Surplus Lines Insurance Company’s (Royal) policies contained super escape clauses, while Liberty Mutual Insurance Company’s (Liberty) policy contained an excess clause. Under Budget, Royal’s policy is to be construed to “exclude coverage if excess insurance is available.” Id. Therefore, the district court did not err in ordering Liberty to reimburse Royal under the express terms of the contracts.

An insured is entitled to recover attorney’s fees from an insurer when the fees were incurred “because an insurer refused] to defend or pay the…