The plaintiff's claims for damages arising from a motor vehicle accident were settled for $10 million, representing the full policy limits of the defendants' two insurers.
The primary insurer offered its $2 million policy limits early in the litigation, while the excess insurer delayed acknowledging its $8 million limits for several years.
The excess insurer brought a motion seeking an equal division of the plaintiff's $1.3 million in costs.
The court dismissed the motion and apportioned the costs 80/20 in accordance with the insurers' respective policy limits, finding this to be the most equitable result that encourages early settlement.
