Fireman's Fund Ins. v. Oregon Auto. Ins.

MEMORANDUM **

Fireman’s Fund Insurance Company and National Surety Corporation (collectively “Fireman’s Fund”) appeal from the district court’s order dismissing Fireman’s Fund’s claims against Oregon Automobile Insurance Company and North Pacific Insurance Company (collectively “Oregon Auto”). We reverse and remand.

The district court’s holding that Oregon Auto’s settlement with the common insured (“Niemi Oil”) barred Fireman’s Fund’s contribution claim against Oregon Auto was based on its interpretation of Or.Rev.Stat. § 465.480(4). Section 465.480(4) provides, “An insurer that has paid an environmental claim may seek contribution from any other insurer that is liable or potentially liable.” Under the district court’s interpretation of this provision, the insurer against which contribution is sought must be currently liable or potentially liable to the insured. Thus, if an insurer has settled with the common insured, the insurer is no longer liable to the insured and cannot be sued for contribution by another insurer.

We conclude that the district comb’s interpretation of § 465.480(4) is erroneous. Upon consideration of the text of § 465.480(4), other provisions of the…