Mitchell, Silberberg & Knupp v. Yosemite Ins. Co.

Opinion

VOGEL (Miriam A.), J.

Without reserving any rights against its insured, an excess liability insurer agreed to and did indemnify its insured by contributing to the settlement of a third party’s action against the insured. The excess insurer then sued the insured’s other insurers, claiming it was entitled to reimbursement for the entire amount of its contribution to the settlement. That lawsuit spawned yet another action (this one), a bad faith claim by the insured against its excess insurer in which the insured contends the excess insurer’s failure to reserve its rights against the…