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California Decision Highlights Risks of Settling Only With Primary Insurer

9/11/2008 Articles

Northern California ABTL REPORT
Summer 2008
by Mary McCutcheon

The California Court of Appeal decision in Qualcomm Inc. v. Certain Underwriters at Lloyd's London, 161 Cal. App. 4th 184 (2008) is a cautionary tale for those intending to settle complex cases with insurance money.  An agreement with the primary insurer cannot be made in a vacuum.  Defense and coverage counsel also must understand whether and how the excess policies are triggered if the insured settles with the primary insurer.

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