COMMERCE v. CHUBB

No. A082611.

89 Cal.Rptr.2d 415 (1999)

75 Cal.App.4th 739

COMMERCE & INDUSTRY INSURANCE COMPANY, Plaintiff and Appellant, v. CHUBB CUSTOM INSURANCE COMPANY, Defendant and Respondent.

Court of Appeals of California, First District, Division Four.

Rehearing Denied November 4, 1999.

Review Denied February 2, 2000.


Attorney(s) appearing for the Case

Burnham & Brown, James L. Wraith, Michael K. Johnson and Matthew G. Dudley, Oakland, for Plaintiff and Appellant.

Crosby, Heafey, Roach & May, Peter W. Davis, Joseph P. Mascovich; Newton, Kastner & Remmel, Stephen L. Newton, Lenell Topol-McCallum, Santa Clara, for Defendant and Respondent.


POCHÉ, Acting P.J.

On March 21, 1996, fire destroyed a New Orleans warehouse causing millions of dollars of damage. The sums involved are large but the issue here is simple— whether that loss is to be borne by one insurer or allocated between two insurers whose policies have competing "other insurance" provisions. We hold that the amount of loss must be prorated between the insurers.

BACKGROUND

New Orleans municipal authorities leased...

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