Steadfast Ins. Co. v. Gemini Ins. Co.
Respondent Steadfast Insurance Company (Steadfast) and appellant Gemini Insurance Company (Gemini) were successive insurers of Avanti Roofing Company, a roofing subcontractor (Avanti). A dispute arose between Steadfast and Gemini over amounts to be contributed toward settlement of a residential construction defect case. Gemini believed that the homeowners' settlement demand to Avanti was unreasonable and refused to contribute. As a result, Steadfast had to decide if it would go to trial and face the possibility of a significantly larger judgment, accept Gemini's offer and pay the difference to meet the demand, or pay the entire demand and seek equitable contribution from Gemini. It chose the latter course.
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