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MAINE BONDING v. CENTENNIAL INS. CO.

CA A23760; SC 29943.

693 P.2d 1296 (1985)

298 Or. 514

MAINE BONDING & Casualty Company, a New York Corporation, Respondent On Review, v. CENTENNIAL INSURANCE COMPANY, a New York Corporation, Petitioner On Review.

Supreme Court of Oregon, In Banc.

Decided January 22, 1985.

Attorney(s) appearing for the Case

Michael A. Lehner, Portland, argued the cause, for petitioner on review. With him on the briefs and petition were Mitchell, Lang & Smith, Portland.

Emil R. Berg, Portland, argued the cause, for respondent on review. With him on the briefs were John R. Barker, and Wolf, Griffith, Bittner, Abbott & Roberts, Portland.

PETERSON, Chief Justice.

The resolution of this case turns upon the answer to this question: When an insured has a layer of "primary" liability insurance and a layer of "excess" liability insurance above the primary, what duty, if any, is owed by the primary liability insurer to the excess liability insurer?

This case involves a classic primary-excess insurance relationship resulting from the purchase by the insured, Great Balls of Fire, Inc., of two separate...

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