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Satterfield & Pontikes Construction, Inc. v. United States Fire Insurance Co.

Court: 5th Cir  08/02/2018  Fifth Circuit Holds that Indemnity Agreements are Other Insurance and Insured Must Allocate Between Covered and Non-covered Damages

After substantial arbitration award was entered against insured general contractor, and the general contractor recovered settlements from subcontractors toward satisfaction of the award, as well as payments from its primary insurers, the general contractor sought to recover the balance of the arbitration award from its excess insurer. The excess insurer disputed coverage because the subcontractors' indemnity payments constituted "other insurance" under the policy language over which it was excess insurance, and because the insured did not allocate the settlements between covered and non-covered damages. The Fifth Circuit agreed and affirmed the ruling of the district court.

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