Kotula, Levy, and Minarovich Obtain Summary Judgment

Michael Kotula, Larry Levy, and Siobhain Minarovich recently obtained summary judgment in the United States District Court for the District of Connecticut. The Court ruled that our client, an excess insurer, did not have to “drop down” and provide coverage in place of an underlying insolvent insurer.

The insured argued that our client had to pay when underlying damages equaled $10 million, even though our client’s policy applied only when damages reached $20 million, because the insurer that provided $10 million of coverage underlying our client’s policy was insolvent.

The Court held that our client’s language unambiguously provided that the policy did not drop down until the underlying limit of $20 million was exhausted. The Court also ruled that our client’s policy did not drop down in connection with a co-insurer’s claim for equitable contribution.

As a result of the ruling, it is unlikely that our client will have any exposure under its $10 million excess policy.