American Casualty Co. of Reading v. Phico Insurance

OPINION OF THE COURT

CAPPY, Justice.

This direct appeal involves the question of allocation of liability payments between two excess liability insurers. More precisely, we must determine the appropriate common law rule for apportioning the loss between insurers where the policies at issue contain irreconcilable and mutually repugnant “other insurance” clauses. For the reasons that follow, we determine that apportioning liability payments by equal shares is the appropriate allocation method and therefore reverse the Commonwealth Court.

This appeal arises out of a declaratory judgment action filed…