Employers Mutual Casualty Co. v. Key Pharmaceuticals

Second-layer excess liability insurers appeal from a judgment of the United States District Court for the Southern District of New York (Sand, /.), entered in favor of their policyholder (and its parent company) on claims and cross-claims arising from the settlement during a trial of an underlying products liability action. The second-layer excess insurers alleged that the policyholder and its parent breached duties in tort and contract when they failed to settle the products liability case prior to trial for an amount that would not have invaded the second excess layer of coverage. Following…