Mercury Insurance Co. v. Chartis Property Casualty
Sami Hayek was involved in a serious automobile accident while driving a borrowed vehicle with the permission of its owner. Settlements were reached in connection with the injuries suffered by other participants, and three insurers contributed to those settlements.
The vehicle owner’s primary automotive liability insurer, AIG Property Casualty Company (AIGPCC), contributed its entire $1 million policy limit, and the propriety of that contribution is not in dispute. This appeal arises out of a dispute between the other two insurers as to the order in which they were obligated to contribute to those settlements.
Plaintiff Mercury Insurance Company (Mercury), which issued an automotive liability policy to Sami, contributed its policy limit to each of the two settlements. However, Mercury reserved its right to seek reimbursement for its contributions from respondent Chartis Property Casualty Company (Chartis), and subsequently filed this lawsuit to recoup those payments.
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