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California Court of Appeal

Ace American Ins. Co. v. Fireman's Fund Ins. Co., 264861

In an equitable subrogation suit by an excess insurer against the primary insurer of a film set, on which a film industry worker was seriously injured, alleging that the injured worker initially offered to settle his case within the limits of the primary insurer's policies, and that the primary insurer unreasonably rejected those settlement offers, and as a result the excess insurer was required to contribute to the eventual settlement, the trial court's sustainment of defendant's demurrer is reversed where because the excess insurer alleged it was required to contribute to the settlement of the underlying case due to the primary insurer's failure to reasonably settle the case within policy limits, the lack of an excess judgment against the insured in the underlying case does not bar an action for equitable subrogation and breach of the duty of good faith and fair dealing.

Appellate Information

  • Decided
  • Published 2016/08/05




  • California Court of Appeal


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