U.S. FIRE INS. CO. v. ROYAL INS. CO.

No. 84-1379.

759 F.2d 306 (1985)

UNITED STATES FIRE INSURANCE COMPANY v. ROYAL INSURANCE COMPANY, Appellant.

United States Court of Appeals, Third Circuit.

Decided April 16, 1985.

Rehearing Denied May 13, 1985.


Attorney(s) appearing for the Case

Stephen A. Cozen (Argued), Jeanne P. Wrobleski, Cozen, Begier & O'Connor, Philadelphia, Pa., for appellant.

Joseph P. Selfridge (Argued), James J. McEldrew, McEldrew, Hanamirian, Quinn & Scace, Philadelphia, Pa., for appellee.

Before GARTH, BECKER and ROSENN, Circuit Judges.


OPINION OF THE COURT

ROSENN, Circuit Judge.

This is a case of considerable importance because of the questions it poses with respect to the operations of the liability insurance industry of this country. It explores for the first time by this court the question of the duty owed by a primary insurance carrier under Pennsylvania law to an excess carrier. It also raises the question of whether the primary carrier acted in bad faith by refusing to tender its...

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