Primary Insurer Cannot Use Equitable Indemnification To Rewrite Unambiguous Terms Of Its Policy

The plaintiff, Arch Insurance Company (Arch), brought a declaratory judgment action against Illinois Union Insurance Company and Harleysville Worcester Insurance Company the defendants, seeking indemnification for payments made to settle a personal injury claim brought by Enio Rodrigues, an employee of the defendants’ insured, Erie Painting & Maintenance, Inc., against Arch’s insured, the New York State Thruway Authority (Authority).

The court found, and Arch conceded, that Arch could not seek contribution from other insurers for its payment to the Authority because the terms of the …

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