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GREATER NEW YORK MUT. INS. v. NORTH RIVER INS. CO.

No. 95-1484.

85 F.3d 1088 (1996)

GREATER NEW YORK MUTUAL INSURANCE COMPANY, v. THE NORTH RIVER INSURANCE COMPANY; Crum and Forster Holdings, Inc.; Rodin Management Incorporated; Crown Park Investors (D.C. Civil No. 94-cv-05223). NORTH RIVER INSURANCE COMPANY, v. GREATER NEW YORK MUTUAL INSURANCE COMPANY (D.C. Civil No. 94-cv-05554), Greater New York Mutual Insurance Company, Appellant.

United States Court of Appeals, Third Circuit.

Decided June 10, 1996.

Attorney(s) appearing for the Case

James D. Crawford (argued), Schnader, Harrison, Segal & Lewis, Philadelphia, Pennsylvania, for Appellant.

Francis J. Deasey (argued), Timothy Costello, Deasey, Mahoney & Bender, Philadelphia, Pennsylvania, for Appellees.

Before: STAPLETON, SCIRICA and COWEN, Circuit Judges

OPINION OF THE COURT

SCIRICA, Circuit Judge.

In Trustees of the Univ. of Pennsylvania v. Lexington Ins. Co., 815 F.2d 890 (3d Cir. 1987), we predicted Pennsylvania law would allow a two-tiered or conditional settlement between a plaintiff and an insured when the insurer refused to defend against plaintiff's suit.1 In this case we predict Pennsylvania law would also permit a two-tiered...

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