TIG Insurance v. ACE American Insurance

MEMORANDUM **

TIG did not file its lawsuit until December 3, 2003. To the extent its claims are based in subrogation, TIG’s action was untimely under the policy’s two-year contractual limitations period applicable to suits by the insured, which expired June 6, 2003, at the latest. Contrary to TIG’s contention, ACE’s denial of coverage on that date was unequivocal and effectively terminated the period of equitable tolling, notwithstanding any “statements] of willingness to reconsider.” Migliore v. Mid-Century Ins. Co., 97 Cal.App.4th 592, 605 , 118 Cal.Rptr.2d 548 (2002). Moreover, to the extent TIG attempts to eharacterize its contribution and indemnity claims as indirect, independent causes of action against ACE as a co-insurer, TIG’s action is still untimely. Given that TIG made its payments on June 26, June 30, and July 30, 2003, its claims for contribution or indemnity based on those payments did not come into existence until after the insured’s claim against ACE became unenforceable under contractual limitations period. See Great Am. W., Inc. v. Safeco Ins. Co. of Am., 226 Cal.App.3d 1145, 1148, 1152-53 , 277 Cal.Rptr. 349 (1991) (stating that “such a claim is timely if…