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ALLSTATE v. AMERICAN HOME

43 A.D.3d 113 (2007)

837 N.Y.S.2d 138

ALLSTATE INSURANCE COMPANY, Appellant, v. AMERICAN HOME ASSURANCE COMPANY, Respondent.

Appellate Division of the Supreme Court of the State of New York, First Department.

June 12, 2007.

Attorney(s) appearing for the Case

LeBoeuf, Lamb, Greene & MacRae LLP, New York City (John M. Nonna, Eridania Perez and Franklin Monsour of counsel), for appellant.

Lord, Bissell & Brook, LLP, Chicago (Mark A. Kreger and Hugh Balsam, of the Illinois bar, admitted pro hac vice, of counsel), and Lord, Bissell & Brook, LLP, New York City (R. James DeRose, III, of counsel), for respondent.

TOM, J.P., SAXE, BUCKLEY and McGUIRE, JJ., concur.

OPINION OF THE COURT

SULLIVAN, J.

In this declaratory judgment action, we are asked whether we must give deference under the "follow-the-fortunes" doctrine to an insurer's reinsurance loss allocation on a one-occurrence-per-site basis that allowed the insurer to exceed the facultative reinsurance agreement's1 $1 million-per-occurrence deductible with respect to four sites. In the underlying litigation between the insurer and...

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