Elmwood Plantation, Inc. v. Ruud Water Heater Division

WISDOM, Circuit Judge:

This is a suit between a primary and an excess insurer. The issue is whether a primary insurer is obligated to contribute to a settlement an amount in excess of its policy limit where the settlement is in lump sum form, and where the primary and excess insurers made no separate agreement to allocate specific portions of the lump sum to payment of the plaintiff’s judicial interest, court costs, and attorneys’ fees. The primary insurer refused to contribute more than its $1,000,000 policy limit to the $4.5 million dollar settlement. The excess insurers, wishing to conclude…