Certain Underwriters at Lloyd's, London v. Fidelity & Casualty Insurance

CUMMINGS, Circuit Judge.

After Terrence Fahy was run over by an asphalt roller built by Dresser Industries, Inc., he sued and won a $3 million verdict. Dresser’s primary insurer, Fidelity and Casualty Insurance Company of New York, paid $1 million of Fahy’s award. Dresser’s excess carrier, Underwriters at Lloyd’s, London, and Companies in Interest (“Lloyd’s”), paid $2 million. Lloyd’s is now suing Fidelity to recoup the $2 million, claiming that Fidelity negligently failed to settle Fahy’s product liability suit against Dresser for $75,-000. The district judge granted Fidelity’s motion for…