North American Capacity Ins. Co. v. Claremont Liability Ins. Co.
This is an action for equitable contribution between two insurers. North American Capacity Insurance Company (NAC) seeks equitable contribution from Claremont Liability Insurance Company (Claremont) for NACs alleged overpayment towards settlement of an underlying action against their mutual insured, general contractor JD Group, Inc. (JDG). The two insurers paid a total of $1.1 million on JDGs behalf as part of a $2.2 million global settlement of a property owners underlying action for defective construction of a home. Of the $1.1 million settlement sum paid on JDGs behalf, NAC paid $800,000 and Claremont contributed $300,000. NAC brought the present action claiming Claremont did not contribute its equitable share of the settlement under their respective policies of insurance. Court hold (1) substantial evidence supports the trial courts findings regarding the project completion date; (2) the court did not err in ruling that the contractors warranty endorsements in Claremonts policies were enforceable preconditions for coverage; and (3) coverage was not available under Claremonts umbrella policy. Furthermore, substantial evidence supports the trial courts allocation of relative responsibility to the carriers, and the court properly exercised its discretion in setting the amounts of equitable contribution. Court therefore affirm.
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