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Certain Underwriters at Lloyds, London v. Arch Specialty Ins. Co.

(California Court of Appeal) – In an dispute between two insurers that shared “indemnification” costs (but not “defense” costs) to settle claims made against mutual insureds in underlying construction defect litigation brought by third parties, the trial court’s grant of defendant’s motion for summary judgment is reversed where: 1) the ‘other insurance’ clause cannot be enforced in this equitable contribution action between successive primary insurers, as enforcement of such a clause in a primary CGL policy would violate public policy; and 2) defendant did not successfully circumvent this result by including the clause in the ‘coverage’ section of the insurance policy as well as the ‘limitations’ section.

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