Federal Insurance v. Traveler's Casualty & Surety Co.

This case raises two issues. First, whether a primary insurance carrier owes a duty to an excess carrier in its conduct of the defense of a mutual insured. Second, whether an excess insurer can be equitably subrogated to the rights of an insured against the primary carrier in the conduct of its defense of the mutual insured. Because these issues are questions of state law which appear to control the outcome of this appeal and there are no clear controlling precedents in the decisions of the Alabama Supreme Court, we certify both questions to the Alabama Supreme Court under Rule 18 of the…