Pacific Indemnity Co. v. Federated American Insurance

This case is before this court pursuant to a petition to review a decision of the Court of Appeals in favor of the respondent, Pacific Indemnity Company, and against the petitioner, Federated American Insurance Company. We granted the petition for the purpose of determining the proper formula for contribution between two automobile liability insurers who insure the same risk, where the fact of joint liability has been agreed upon by settlement.

The facts of this case are as follows: Federated insured William Farrimond for any liability arising out of the operation of his vehicle; also insured…