June 19, 2015

Partner David M. Kroeger is quoted in an article that examines five significant cases that insurance lawyers are tracking in the second half of 2015.  Titled “Insurance Cases to Watch in the 2nd Half of 2015,” the article in Law360 analyzes In re: Viking Pump Inc. and Warren Pump LLC Insurance Appeals.  In that matter, the Delaware Supreme Court asked New York's highest court to provide guidance on key questions relating to allocation and exhaustion that arose in a decade-old battle over excess coverage for asbestos injury claims against Viking Pump Inc. and Warren Pumps LLC.  Following oral arguments on appeals in the case, the Delaware high court certifiedto the New York Court of Appeals the question of whether under New York law, when there are noncumulation and prior insurance provisions, the proper method of allocation is “all sums” or pro rata.  David observes that “if you’re on the insurers’ side, you’re looking for what you view as a recent trend toward pro rata allocation to continue. If you're on the policyholders’ side, you’re hoping for all sums allocation.  New York is a significant player in the insurance world, particularly when it comes to asbestos litigation. The Court of Appeals’ ruling would have an effect on any sort of long-tail claims where pro rata v. all sums allocation and horizontal v. vertical exhaustion are at issue.”