Philadelphia Indemnity Insurance Co. v. Lexington Insurance Co.

I join in the well-reasoned decision of the majority in all respects, except I dissent from Section II.B.2, on the pro rata apportionment of the loss between Philadelphia and Lexington.

Philadelphia appeals from the district court’s pro rata calculation, arguing that the court improperly used Lexington’s liability limit, rather than its policy limit, to calculate each insurer’s pro rata percentage share of the loss. Unlike the majority, I agree.

The rule in Equity Mutual is that:

When concurrent policies have such “other insurance” clauses which cancel each other, we hold that they are mutually…