Pennsylvania Lumbermens Mut. Ins. Co. v. Indiana Lumbermens Mut. Ins. Co. (Fla. Ct. of App., September 15, 2010)

Primary Insurer Has No Right to Reimbursement of Defense Costs

Two insurers issued separate policies to the same policyholder covering consecutive policy periods. A suit was filed against the policy holder, alleging damages that began in one policy period but extended into the other. One insurer defended and indemnified the policyholder, but the other did not. The first insurer sought a reimbursement of defense costs and indemnity from the second insurer. The court determined that the second insurer was not required to reimburse any of the defense costs because the first insurer had an independent duty to defend. The first insurer was entitled to contribution for indemnity, however.