Northmeadow Tennis Club, Inc. v. Northeastern Fire Insurance

At the time of the alleged tort — serving alcohol to an inebriate — Northmeadow Tennis Club, Inc.'(Tennis Club), was insured under three general liability policies: first, a primary policy with limits of $300,000; second, an excess insurance policy with limits of $200,000 above the base coverage, i.e., up to $500,000; and third, an excess insurance policy for the layer of liability between $500,000 and $1,000,000. During the pendency of the underlying action against the Tennis Club, the primary insurer, Northeastern Fire Insurance Company of Pennsylvania became insolvent, thus provoking a new…