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Laura Foggan Discusses Allocation of Loss Ruling by New York High Court
Laura A. Foggan, chair of Wiley Rein’s Insurance Appellate Group, was quoted in an article published May 3 in Law360 about a decision by the New York Court of Appeals, which ruled based on the policy language at issue that the “all sums” allocation method should apply in a case involving Viking Pump Inc. and Warren Pumps LLC.
According to the article, the court rejected an argument by excess carriers that the “pro rata” allocation method applied in the case because of non-cumulation clauses contained in the policies at issue. It reaffirmed pro rats allocation as the preferred method under other policy forms as the court held in a prior case.
Ms. Foggan said this decision shows there are unresolved legal issues “at the intersection of allocation of loss and noncumulation clauses.”
“Here, a court that decidedly favors pro rata came up with a different result on these facts, but this suggests that there are still some unsettled areas where we probably will have to look to the law to develop more over time,” Ms. Foggan said.
To read the complete article, click here.