Peerless Insurance Company v. Technology Insurance Company, Inc., 2:18-cv-01553

Insurers Peerless and Technology both provided identical Coverages A (bodily injury/property damage) and B (personal/advertising injury) and identical Coverage C (medical payments) to insured Amelia Associates; court previously held they are co-primary for overlapping coverage.
Peerless paid $15,000 in medical expenses to claimant Kathleen Mich on September 22, 2014, more than two years before Mich sued Amelia (suit filed Feb. 17, 2017).
Coverage A/B require the insured be "legally obligated to pay as damages" (indemnity typically attaches upon judgment or binding settlement); Coverage C pays medical expenses regardless of fault subject to policy preconditions.
Technology argued the $15,000 payment did not trigger Coverage A/B because no judgment or settlement existed when Peerless paid; Peerless argued the payment should be shared under the co-primary obligation.
The court found the payment was not covered by Coverages A/B but did satisfy Coverage C’s preconditions; because both insurers are co-primary for Coverage C, Technology must share the medical expense.
Technology’s Coverage C has a $5,000 medical expense limit; the court ordered Technology to reimburse Peerless $5,000 plus pre-judgment interest and to pay 50% of the remaining $7,821 defense/indemnity costs plus interest.

Issue	Plaintiff's Argument (Peerless)	Defendant's Argument (Technology)	Held
Whether the $15,000 medical payment is covered under Coverages A/B ("legally obligated to pay as damages").	Peerless contends the payment relates to the underlying claim and falls within co-primary obligations.	Technology argues no legal obligation existed when payment was made (no judgment/settlement/litigation threat), so A/B do not apply.	Not covered under A/B — insurer liability attaches on judgment/settlement; Peerless paid before any legal obligation.
Whether Coverage C (medical payments) applies and amount Technology must reimburse.	Peerless argues Coverage C applies (medical expense policy regardless of fault) and Technology must share the $15,000.	Technology disputes applicability/limits but does not show Coverage C preconditions unmet; contends its policy limit applies.	Coverage C applies; Technology must reimburse Peerless $5,000 (policy Medical Expense Limit) plus pre-judgment interest and 50% of the remaining $7,821 defense/indemnity costs plus interest.

M & M Elec., Inc. v. Commercial Union Ins. Co., 241 A.D.2d 58 (discussing that insurer duty to indemnify attaches upon establishment of legal liability)
State Farm Mut. Auto. Ins. Co. v. Westlake, 35 N.Y.2d 587 (liability of insurer attaches when there is a final judgment against the insured)
Caruso v. Northeast Emergency Med. Assocs., 54 A.D.3d 524 (settlement can establish legal obligation for indemnity)
Westchester Fire Ins. Co. v. Utica First Ins. Co., 40 A.D.3d 978 (insurer duty to indemnify requires establishment of legal liability)
Nat’l Cas. Co. v. Vigilant Ins. Co., 466 F. Supp. 2d 533 (where two policies provide primary coverage for same risk, each shares in expenses)