St. Paul Mercury Insurance v. Lexington Insurance

WIENER, Circuit Judge:

The primary issue presented by this appeal is the effect of conflicting “other insurance” clauses on the obligations of primary and excess insurance carriers to contribute to a settlement entered into by the insured. Applying Texas law, the district court prorated liability first among the primary carriers, and then among the excess carriers, in proportion to the amount of insurance provided by the insurers’ respective policies. In the final analysis, proration as to the primary carriers was immaterial because they had to pay their full policy limits; however, the excess…