Signal Companies, Inc. v. Harbor Ins. Co.

STANIFORTH, J.*

I dissent.

Harbor Insurance Company (Harbor) consented to Pacific Indemnity Company’s (Pacific) pretrial settlement of a commonly insured loss claim made against The Signal Companies (Signal) for an amount $10,000 in excess of Pacific’s (the primary insurer’s) policy limits. By reason of these admitted facts and the explicit words of paragraph 2(b) of Conditions of its contract, Harbor was required to “contribute to the costs incurred” on behalf of its insured Signal “in the ratio that its proportion of the ultimate net loss as finally settled bears to the total agreed…