58 A.3d 497
Md. Ct. Spec. App.2012Background
- Allegheny's subsidiaries insured by multiple North River policies, including four Non-JU excess policies, with underlying AEGIS policy, covering 1984–1985.
- Allegheny faced asbestos-related claims; London sued for declaratory judgment to define insurance obligations.
- Allegheny and insurers filed cross-claims; Allegheny sought to interpret policies under Pennsylvania law and to select a first-year policy for asbestos defense.
- London and appellant pressed New York law for interpretation; Allegheny argued Pennsylvania law applies due to where premiums were paid and policies delivered.
- Circuit Court granted partial summary judgment to Allegheny on choice-of-law for Non-JU Policies and deferred certain set-off/occurrence issues.
- On appeal, court upheld Pennsylvania law applying to Non-JU Policy interpretation and denied set-off relief as premature.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Choice-of-law for Non-JU Policies | Allegheny: PA law governs; policies delivered/paid in PA. | London: NY law applies for policies via EBASCO; delivery/last act in NY. | Pennsylvania law applies; PA law governs interpretation of Non-JU Policies. |
| Set-off against settling insurers | Appellant entitles to set-off equal to settling insurers' pro rata shares. | Allegheny waived set-off; or set-off premature/undeterminable due to missing facts. | No set-off; court did not abuse discretion in denying partial summary judgment on set-off. |
Key Cases Cited
- Commercial Union Ins. Co. v. Porter Hayden Co., 116 Md.App. 605 (Md. 1997) (lex loci contractus approach; delivery/where contract made for insurance.)
- Gould, Inc. v. Cont’l Cas. Co., 401 Pa.Super. 219 (Pa. Super. 1991) (other-insurance/pro-rata contributions; allocation by policy terms.)
- J.H. France Refractories Co. v. Allstate Ins. Co., 534 Pa. 29 (Pa. 1993) (joint and several liability for all sums up to policy limits; asbestos context.)
- Koppers Co. Inc. v. Aetna Cas. & Sur. Co., 98 F.3d 1440 (3d Cir. 1996) (set-off/allocation framework for settling primary and excess insurers.)
- The United States Life Ins. Co. v. Wilson, 198 Md.App. 452 (Md. 2011) (locus contractu and where contract is made; applicable law for interpretation.)
- Cont'l Cas. Co. v. Kemper Ins. Co., 173 Md.App. 542 (Md. 2007) (lex loci contractus; where a contract is made governs interpretation.)