Wednesday, February 20, 2019

Westport Ins. Co. v. California Cas. Ins. Co. - Feb. 20, 2019)

It's been a full week since the last published Ninth Circuit opinion.  A full week.  I know it's cold, and tough to get work done.  But that's precisely when we need to snuggle up in front of a warm fireplace and read appellate opinions for fun.  So let's get cracking, Ninth Circuit.

Fortunately, today, we finally get a published opinion.  Unfortunately, we only get one, and its about how to allocate a settlement payment between two insurance companies.  Zzzzzzzz.  I mean, sure, it totally matters to the relevant insurance companies.  And we're talking about a fair chunk of change here -- the settlement is for various molestation claims made against the Moraga School District and three of its administrators when a middle school teacher allegedly touched some students, and for the three plaintiffs, the total settlements were $15.6 million.

So, yes, a lot of money at stake.  And this particular insurance company's share of that liability was held by the district court to be $2.6 million -- plus another $750,000+ in prejudgment interest.  More than sufficient to justify hiring a law firm to try to get that allocation eliminated or reduced.

But for the rest of us, it's not a particularly enthralling case.  Particularly since the panel just ends up affirming the district court's decision -- largely for the same reasons articulated below.  Lots of legal arguments on appeal, but none that were persuasive.

So we now know that an excess insurer can indeed be forced to contribute to a primary insurer's settlement payment on behalf of a district and its administrators.  Okay.  Glad to hear it, I guess.

But for more excitement from the Ninth Circuit, we'll have to await another day.

Hopefully not another week.  We miss you, Ninth Circuit.